Tottenham announce pay cut for 550 staff and apply for furlough
Written by Simon Austin — March 31, 2020
TOTTENHAM will cut the pay of all 550 non-playing directors and employees by 20% in April and May using, “where appropriate”, the Government’s furlough scheme.
The Coronavirus Job Retention Scheme allows employers to claim 80% of an employee’s salary, up to a maximum of £2,500 a month. Newcastle United were the first Premier League club to place staff on furlough, notifying personnel in their Academy, scouting and Foundation departments that they would be placing them on the Government scheme on Monday.
Norwich City and Bournemouth have followed suit, as you can read below, and Tottenham chairman Daniel Levy informed staff on Tuesday: “Having already taken steps to reduce costs, we ourselves made the difficult decision - in order to protect jobs - to reduce the remuneration of all 550 non-playing directors and employees for April and May by 20% utilising, where appropriate, the Government’s furlough scheme.
“We shall continue to review this position.”
He also called on players and coaching to staff to “do their bit for the football eco system”. So far Leeds United are the only English club to have announced a wage cut for their players.
“We hope the current discussions between the Premier League, PFA and LMA will result in players and coaches doing their bit for the football eco system,” Levy added.
According to the Global Salaries Survey for 2019, Tottenham’s first-team squad had an average weekly wage of £76,174 and last April the club announced profit of £113m after tax for 2017/18.
Levy was paid a £3m bonus in 2019, "for delivering the club's new stadium", in addition to his £4m salary.
“We are maybe the eighth largest Club in the world by revenue according to the Deloitte survey but all that historical data is totally irrelevant as this virus has no boundaries," he added.
“The Club’s operations have effectively ceased, some of our fans will have lost their jobs and most will be worried about their future. Our sponsors will be concerned about their businesses and our media partners have no certainty when we may play games again or whether we will be allowed to play in front of our fans. In the meantime, the Club has an annual cost base running into hundreds of millions of pounds.
“We have seen some of the biggest clubs in the world such as Barcelona, Bayern Munich and Juventus take steps to reduce their costs. I have no doubt we will get through this crisis but life will take some time to get back to normal.”
Later on March 31st, Norwich City announced that they were to "begin the process of furloughing members of staff who are unable to work at this time".
“The furloughing of staff will safeguard future jobs and help sustain the club throughout this period," the club added. “The club will top up the money received from the scheme to ensure that all furloughed staff receive their usual salary in full.
“Where necessary, part-time and casual staff will also be furloughed. As part of the scheme, furloughed staff will not be permitted to carry out work for the club.
“The club will continue to monitor and review the situation as it develops.”
Bournemouth have announced four of their highest earners are to take "significant" pay cuts for the "foreseeable future". They are: manager Eddie Howe, who earns £3m a year and is the first Premier League manager to take a voluntary pay cut; assistant Jason Tindall; Technical Director Richard Hughes; and Chief Executive Neill Blake.
In addition, more than 50 staff have been placed on the Government's Coronavirus Job Retention Scheme, which pays 80% of an employee's salary up to £2,500 a month, with the club topping up the extra 20%.
A statement from the Bournemouth board read: “There is no script for moments like this. No tactics and no set plays to find a winning formula. But as a board we are continually looking at ways to ensure the future of the club and our employees is protected when the season returns.”