Premier League Clubs To Negotiate Directly With Players On Wage Cuts
Premier League clubs and players will negotiate wage reductions for players on a club-by-club basis after discussions broke down between the league, its clubs and the Professional Footballers’ Association (PFA).
Some clubs are facing pressure over their handling of coronavirus pay issues, as Liverpool, Tottenham, Newcastle, Bournemouth and Norwich all furloughed non-playing staff under the government’s Job Retention Scheme, with some also additionally ‘topping-up’ staff wages to ensure they don’t have to take a pay-cut at all during the crisis.
That news came as clubs were already asking players to defer wages or take temporary cuts to help clubs continue to function throughout, and after, the crisis.
Writing in The Telegraph, Oliver Dowden, the UK Culture Secretary, said “the deadlock between the PFA and the Premier League clubs on players’ wage cuts is deeply concerning.
“Clubs, players and owners should be thinking very carefully about their next steps.
“It’s especially important that a disagreement over players’ wages doesn’t undermine all the good work that sport – including football – is doing to help the government’s efforts to tackle coronavirus.”
The Premier League has proposed that clubs take a 30% pay cut, and it has also announced a £20 million donation to the NHS, as well as an advance of £125 million funding to clubs in the four tiers below the top division.
A PFA statement on behalf of the players, however, pointed out that a blanket wage cut for players would mean the Government losing some £200 million in tax over a 12-month period.
The statement said: “The players are mindful that as PAYE employees, the combined tax on their salaries is a significant contribution to funding essential public services – which are especially critical at this time. Taking a 30% salary deduction will cost the Exchequer substantial sums. This would be detrimental to our NHS and other government-funded services.
“The proposed 30% salary deduction over a 12-month period equates to over £500m in wage reductions and a loss in tax contributions of over £200m to the government. What effect does this loss of earning to the government mean for the NHS?”
Writing in The Mirror, Derby County player-coach Wayne Rooney pointed out that the Premier League’s £20 million donation is a ‘drop in the ocean’ compared to the sacrifices players were being asked to make.
“Clubs should be sitting down with each player and explaining what savings it needs to survive. Players would accept that,” hs said.
“One player might say, ‘I can afford 30%; another might say, ‘I can only afford 5%’.
“Whatever way you look at it, we’re easy targets. What gets lost is that half our wages get taken by the taxman. Money that goes to the government, money that is helping the NHS.”
