National League clubs to discuss ending season early after discovering bailout 'grants' are loans

National League clubs will discuss ending their season during crisis talks on Wednesday over Government funding now coming in the form of loans instead of grants.

Some teams in the fifth and sixth tiers are furious after receiving assistance to start the 2020-21 campaign but are now being told £11 million more will have to be paid back.

Representatives from the National League, National League North and South will meet in small groups during the morning and early afternoon to talk through options, which includes taking on more debt or stopping the season.

“If these loans are the final straw, it sends them over the edge,” said one senior National League source. "The big issue is that we only started the season because we were promised a grant if we weren't allowed to have crowds.”

It is understood that any loans from the Department of Culture, Media and Sport will have to be taken on as a group, rather than having some clubs taking on more debt and others refusing. And borrowing more money has led to fears about the implications for clubs in terms of where the loan stands with regard to other debt, security over the loan and repayments, even on soft terms.

The Covid-19 tier-system in England meant some clubs in eligible areas were allowed 2,000 supporters through the turnstiles but the return to full lockdown has ended all hope of imminent gate-receipt income for clubs.

Clubs are also angry because staff were taken off furlough because of the 'grants' but the funding deal has now changed.

Dagenham managing director Steve Thompson has urged the Government to reconsider its decision. He does not expect a vote on ending the season until later in the month after the problems are discussed.

"When it became clear that we weren't going to get supporters back negotiations started again with the DCMS, it started to become apparent that it would have to be via loans,” Thompson said. "But that has only been crystallised in the last week or so. We have asked DCMS to reconsider. I can't see how clubs can commit to wages after the end of January.

"By giving the impression we were going to get grant money if supporters weren't allowed back in by January then clubs have taken on players on new contracts. Kicking off the season has given them a liability for the whole season.”