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Premiership clubs: Furlough, pay-cuts, deferrals

Steven Davis and Ryan Christie

What are Premiership clubs planning in terms of their staff during the coronavirus lockdown?

Aberdeen

Aberdeen were one of the first clubs in Scotland to spell out how challenging the coronavirus pandemic could potentially be for football teams in the country, with chairman Dave Cormack warning of a £5m outgoings hole in the club's finances as income has been hamstrung.

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Aberdeen chairman Dave Cormack says wage deferrals by manager Derek McInnes, coaching staff and players mean the club will not need to lay off other employees

Cormack told Sky Sports News at the weekend that Derek McInnes, his coaching staff and the playing squad have deferred between 10 per cent and 30 per cent of their wages for the next four months.

They have not furloughed non-playing staff, with that decision based around helping the local community with a variety of projects. Cormack has also announced a cash injection of £2m from himself and other investors, while season tickets for 2020-2021 have gone on sale.

Celtic

Celtic's first-team squad and manager Neil Lennon are taking "a significant reduction in salaries" to help the club during the coronavirus pandemic.

The players and Lennon have volunteered along with the club's chief executive Peter Lawwell, non-executive directors, executive team, and backroom staff, including academy and football operation executives.

The measures, which are in place until the end of June at the earliest, include "deferrals of a significant proportion of their earnings."

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At the start of April, Celtic confirmed they were putting some non-playing staff on furlough.

The club are supplementing the Government's scheme - in which 80 per cent of wages are paid up to £2,500 - to ensure no employee suffered a shortfall in salary.

Celtic CEO Peter Lawwell
Image: Celtic chief executive Peter Lawwell; the club say they will ensure furloughed workers receive full pay

The club also announced the deadline for supporters to buy season tickets for next year has been extended to May 29.

Lennon also said previously that he would expect his team, who are top of the Scottish Premiership, to be declared champions in the event of an incomplete season due to the outbreak.

Hamilton

Hamilton have confirmed that players and staff have been placed on the government's furlough pay scheme.

The club have also revealed that everyone will receive 100 per cent of their pay as Hamilton will make up the remaining 20 per cent.

Hamilton manager Brian Rice
Image: Hamilton manager Brian Rice

Hearts

PFA Scotland is negotiating with Hearts on behalf of the club's players amid the ongoing stand-off over proposed wage cuts.

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Hearts owner Ann Budge expects the SPFL's proposals to end the current season to be rejected when the vote takes place

Hearts owner Ann Budge has denied reports that the players were requested to take a 50 per cent wage cut, but has warned that the club will not survive a six-month shutdown without implementing cuts. Budge said at the weekend that some players had agreed to cuts, but PFA Scotland says Hearts' players want to go down a deferral route.

Captain Steven Naismith has agreed to take a 50 per cent cut, while manager Daniel Stendel has waived his wages entirely. The majority of non-playing staff at the club have been furloughed.

Hibernian

Hibernian have struck a wage deferral agreement with players and senior staff, with some deferring up to 50 per cent of their pay after a "period of constructive consultation in order to protect jobs and incomes".

The majority of the club's non-playing staff have also been placed on furlough leave until football recommences.

Chairman Ron Gordon has agreed to repay the shortfall in income over an agreed period, once things return to normal, while season tickets for 2020-2021 are now on sale to alleviate short term cashflow issues.

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Hibernian head coach Jack Ross says his players deserve praise for the way in which they quickly agreed salary deferrals to help secure the club's future

Kilmarnock

Kilmarnock are monitoring the situation, but currently continue to pay all staff and players full wages. Although the club say "all options are on the table"; once decision-making over the future of the SPFL league season becomes clearer, the possibility of furloughing staff is likely to increase.

Scotland manager Steve Clarke will take a 10 per cent pay cut
Image: Scotland manager Steve Clarke will take a 10 per cent pay cut

Livingston

Livingston were enjoying another impressive season in the top flight before the shutdown and recently posted a record profit of £367,530 for the year ending June 2019.

Chairman Robert Wilson has guaranteed that the club will meet players' and staff wages in full for the time being, but said the club intend to use the government's furlough scheme and that the situation is not "sustainable indefinitely".

Livingston continue to exceed expectations in the Premiership
Image: Livingston were exceeding expectations in the Premiership

Livi are also offering supporters the chance to become shareholders if they donate a minimum of £20 a month to "help the club through the coming uncertain months".

Motherwell

Chief executive Alan Burrows told Sky Sports News last week that Motherwell were looking at the furloughing option, and hope the government scheme will help the club get through the shutdown "with as little damage as possible", but he said they are "well-placed" in the short term.

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Motherwell chief executive Alan Burrows says it's starting to look unlikely that the current Scottish Premiership season will be able to finish

Chairman Jim McMahon said the club "are not in an immediate liquidity (cash) crisis" due to diligent financial management but admitted they are "looking at all possible funding packages to build up our cash reserves" as the shutdown continues.

Rangers

Rangers revealed on Monday that the first-team squad had volunteered to temporarily forego a portion of their wages for three months, with both the players and coaching staff reported to be taking only half of their salaries for that time.

The club said they will also be implementing the job retention scheme for a "number of employees", with Rangers making up the remaining 20 per cent to ensure all staff are paid their full wages.

Dave King stepped down as Rangers chairman towards the end of March, as he had previously announced his intention to, with Douglas Park placed in interim charge. The club have insisted that a new funding plan is "well advanced" despite King saying this had been put on hold "while the board considers the financial consequences of the rapidly evolving global impact of coronavirus".

Dave King at the Rangers AGM
Image: Dave King stepped down as Rangers chairman

The club have offered up partial use of Ibrox to the NHS to help aid the fight against the coronavirus, while striker Alfredo Morelos has pledged £75,000 to help underprivileged families in his home country of Colombia during the pandemic.

Rangers managing director Stewart Robertson also said that finishing the season early with games still to play "impacts upon the integrity of sport in Scotland" and insisted that the club would "not be found wanting in this situation" if authorities decided to end the season using the current standings.

Ross County

All players and selected members of staff have been furloughed via the government scheme. This includes some of the coaching staff, but others have been retained.

Ross County’s game at Livingston on Saturday may be in doubt after illness swept through the first-team squad
Image: All players and selected members of staff have been furloughed at Ross County

A selected number of Ross County operational staff continue to work from home, to oversee a number of community projects that are taking place. There are no plans to launch season-ticket sales for 2020-2021 at this stage

St Johnstone

St Johnstone announced on Wednesday, April 8 that they were placing the majority of their playing and coaching staff on furlough.

St Johnstone manager Tommy Wright discusses his future at the club, amidst Michael O'Neill's departure from the Northern Ireland job.
Image: St Johnstone manager Tommy Wright is likely to be retained as an employee

However, the club have retained a small number of their football department to continue carrying out club and media duties.

St Johnstone have also confirmed most of their non-playing staff have been furloughed.

St Mirren

St Mirren have confirmed that players and non-playing staff, with the exception of what they call a "core group who are required for the continued running of the club", have been placed on the UK Government's Job Retention Scheme.

The club say they are committed to ensuring they make up any difference to their staff members' usual pay level.

St Mirren’s Stephen McGinn (L) and Paul McGinn at full time
Image: St Mirren held a boardroom meeting on April 6

They also revealed on Tuesday that, instead of supporters donating money to the club, they have decided to put season tickets for next season on sale early from April 13.

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