25% pay cut

Matt Dean is reporting that Grimsby players has agreed a 25% pay cut until we are back playing in front of fans.

Quoted from Davec

Matt Dean is reporting that Grimsby players has agreed a 25% pay cut until we are back playing in front of fans.

Does that mean they all get the temporary pay cut, the government pay up to £2500 (or 80%) of their new wage, and the club, who have zero income right now, pay the remainder?  I assumed the club paid nothing, as most furloughing employers are doing, but someone posted the other day that legally, all EFL contracts have to be paid in full in order to not breach the contract.  I couldn't believe that.

An example would be a player of £1,500/week, so 6K a month.  This would now be £4,500/month, so the club will still have to pay that player £2,000/month until fans are allowed back.  That's still a black hole right there.  Worrying times for all clubs.

We had some Imps on here a few months back saying (boasting) that some of their players were on 5K a week - with no income, that's a black hole that makes ours look trivial in comparison.........

Doesn't mention the furlough scheme so I assume they are not using it.

Wasn’t the furlough scheme and players contracts discussed elsewhere...I think it’s a little more complex, I’d imagine this is a 25% pay cut of their actual salary...

Admirable of the players to agree to this but i suppose they have little option really other than potentially risking bankrupting their employer and losing out in the long run.
If the club enforcd it then i guess they would be breaching contracts,  allowing the players to terminate but again, right now, where would they go that would offer them anything ?

Cannot see that the players had that much of an option to be honest lads....

however hopefully the Promotion Bonus next May should see them ok..

Ollie was the "mystery guest" on talksport's Alan Brazil show this morning and said we have enough to pay the players for 12 months without crowds and can survive for this amount of time due to them taking a pay cut!
Anybody else hear the show this morning?

A tuff decision, to lose 25% of your wages is a big ask. Very admirable they have agreed to it. Maybe the crowdfunding money could help? UTM

Here is what Phillip Day has to say:


https://www.grimsbytelegraph.co.uk/sport/grimsby-town-day-wage-cut-4192501

As he explains, they showed the figures to the players and explained the details. The players readily agreed to taking the cut. Non playing staff have been treated differently,  presumably that means the have been furloughed.

It shows what a special set of players we have at Town.

Did anyone find out if players were ever placed on the furlough scheme?

It may be seen as admirable, it may be seen as necessity, I guess that’s not really important, long term the decisions has been agreed simply to provide some sustainability.

Are there any other clubs where this has happened?

This is very obviously going to be the new reality in English football.

Clubs that have overstretched themselves financially chasing that elusive promotion spot will find themselves staring down a very black hole indeed. In truth though, the game is a bloated version of what it once was, and some rationalisation of the game, and pay, has been long overdue. Am not necessarily talking about Town players, because although they won't be poorly paid they're not on excessive wages for what is a short lived career, but other clubs will be finally waking up to what a monster they have created if they haven't done so without proper contingency planning - and nobody saw this coming?

I think we will see clubs go to the wall. The noises coming from some of them don't sound that healthy. Am glad Town are in a position where Ollie thinks we can ride the storm for twelve months, because in my view that's probably how long it's going to take before there's anything like being able to watch your team live again.

I feel for the players, but I hope their collective action has saved their jobs in the long term, and that we / they come out of it stronger at the other end.

Quoted from aldi_01

Did anyone find out if players were ever placed on the furlough scheme?

https://www.grimsbytelegraph.c.....-coronavirus-4013550

Quoted from mimma

Here is what Phillip Day has to say:


https://www.grimsbytelegraph.co.uk/sport/grimsby-town-day-wage-cut-4192501

As he explains, they showed the figures to the players and explained the details. The players readily agreed to taking the cut. Non playing staff have been treated differently,  presumably that means the have been furloughed.

It shows what a special set of players we have at Town.

its admirable, but i suspect other clubs will have to do the same, i dont think they can be deemed anymore special than other players who will need to consider the same offers.  There could be a boom in attendances once we get going, and if we are doing well, and we might get more people through the gates in  half the games than we would for a full season. assuming we might get back in say January time, when we aere 15 points clear of everyone else

Boom in attendances won’t happen - no buggers got any money..plenty have/will lose jobs. Can’t magic money out of thin air unlike government.

Disagree with the ‘12 months before you’ll be able to watch team again’ - think this thing fades away and only sporadic isolated cases after. That’s my hope anyway. I reckon there’ll be an audience of some sort sooner rather than later.

Quoted from Heisenberg

Does that mean they all get the temporary pay cut, the government pay up to £2500 (or 80%) of their new wage, and the club, who have zero income right now, pay the remainder?  I assumed the club paid nothing, as most furloughing employers are doing, but someone posted the other day that legally, all EFL contracts have to be paid in full in order to not breach the contract.  I couldn't believe that.

An example would be a player of £1,500/week, so 6K a month.  This would now be £4,500/month, so the club will still have to pay that player £2,000/month until fans are allowed back.  That's still a black hole right there.  Worrying times for all clubs.

We had some Imps on here a few months back saying (boasting) that some of their players were on 5K a week - with no income, that's a black hole that makes ours look trivial in comparison.........

The Furlough scheme works the other way around to be fair, it pays 80% of an employees wages but only up to a maximum of £2500 PM
Most league 2 players will be on an average of 1.5k per week so the Furlough will cover less than half their wages leaving the club who currently have no income to pay the rest.

if an  player is on 6K PM and I suspect a few are on higher then the government will pay the first  2.5K leaving the club to pay 3.5K PM, if they took a 25% pay cut the club will still have to find roughly 2K PM per player. The sooner the football starts the better.

Great move by the players. Second waves don't appear to be happening around the world.

Be interesting to see what happens in 2-3 weeks when the full effects of easing lockdown, people breaching the rules and the protests has on case numbers. At that point, I think we will have a better idea on timescales.

Quoted from Rob_in_Grimsby

The Furlough scheme works the other way around to be fair, it pays 80% of an employees wages but only up to a maximum of £2500 PM
Most league 2 players will be on an average of 1.5k per week so the Furlough will cover less than half their wages leaving the club who currently have no income to pay the rest.

if an  player is on 6K PM and I suspect a few are on higher then the government will pay the first  2.5K leaving the club to pay 3.5K PM, if they took a 25% pay cut the club will still have to find roughly 2K PM per player. The sooner the football starts the better.

That’s actually what I said.

Quoted from Heisenberg

That’s actually what I said.

sorry re read it it and you did lol, I thought you had said they paid the full 80%. my mistake

These figures don’t work correctly .At present the players are on furlough which is 80% of their wages.at present.So if a player gets £5000 a month before the pandemic they will get 80 %.(4.000) a month on furloughThe chairman states they agreed to the pay cut so does that mean 80 percent wage on furlough then another 25% from the players agreeing the pay cut.

Quoted from Iknowyoursecret

These figures don’t work correctly .At present the players are on furlough which is 80% of their wages.at present.So if a player gets £5000 a month before the pandemic they will get 80 %.(4.000) a month on furloughThe chairman states they agreed to the pay cut so does that mean 80 percent wage on furlough then another 25% from the players agreeing the pay cut.

No, it’s 80% BUT up to a maximum of £2,500.

Quoted from jamesgtfc

Great move by the players. Second waves don't appear to be happening around the world.

Be interesting to see what happens in 2-3 weeks when the full effects of easing lockdown, people breaching the rules and the protests has on case numbers. At that point, I think we will have a better idea on timescales.

Iran may be at the start of a 2nd wave - https://www.bbc.co.uk/news/world-middle-east-52903443

Quoted from Iknowyoursecret

These figures don’t work correctly .At present the players are on furlough which is 80% of their wages.at present.So if a player gets £5000 a month before the pandemic they will get 80 %.(4.000) a month on furloughThe chairman states they agreed to the pay cut so does that mean 80 percent wage on furlough then another 25% from the players agreeing the pay cut.

sorry but you are getting the 80% wrong, The government have agreed to pay 80% of a workers wages up to a maximum of 2.5k  pm The employer is still expected to pay the remainder  themselves unless agreed by both parties in a legal agreement.  as far as i can see the club have been making up the rest of the players wages since the season was stopped.

Some companies have made up the difference and some by mutual consent not,

Interesting Phillip day said he thought this was the first pay cut (as opposed to deferral) agreed in the whole EFL. Really well done to the players, got to appreciate that from them.

Saw Harry Davies did an interview with Calendar News earlier, about being released and how it has brought home to him that he may actually have to retire at 28, when that is pretty much when you are supposed to be at your peak,  from football and find another living.

So the players have a secure wage until the end of the next season.  Bit less money but secures wages for them and keeps the club on straight and narrow for now.
Hope the boys are enjoying the break but keeping fit, would be very easy to get badly out of shape in the amount of time between seasons

I would imagine that our players are grateful to be having a secure wage coming in for the foreseeable future, even if it is 25% down, given the alternative. There will be many players and many teams in a much worse financial situation than we are.

I feel we will come out of this in a fairly healthy state and hopefully ready to start getting back to where we all want us to be.

Quoted from jamesgtfc

Great move by the players. Second waves don't appear to be happening around the world.

Be interesting to see what happens in 2-3 weeks when the full effects of easing lockdown, people breaching the rules and the protests has on case numbers. At that point, I think we will have a better idea on timescales.

I just read this morning that 11 countries around the world have reimposed restrictions.