Yesterday I made my feelings clear regarding Celtic’s decision to take advantage of the Government’s Job Retention Scheme and the Editor put forward the counter argument to it, many of the points raised I’m in agreement with, though of course it’s clear we disagree on the furloughing issue.
The #Celtic Furlough Debate – Why Peter Lawwell has made the right call @CelticStarMag https://t.co/9qaAFzbVYu
— Celtic news now (@Celticnewsnow) April 1, 2020
We’ve also had some fantastic contributions to the debate from the Celtic Star readers. It’s clearly been a somewhat divisive issue but one thing has shone through. Whether you agree with the club’s decision to have the public purse foot the bill for 80% of our lower paid staff or whether you think we could have done it without the need for state assistance at present, there seems to be a consensus that players, Peter Lawwell and others have been conspicuous by their own absence when it comes to a salary sacrifice contribution to the cause.
As the Editor said, Players and Board members should be stepping up. In my opinion they should be doing so voluntarily. They should also have taken a lead, not asked the taxpayer to fund the back office low earners and youth coaches and then look to follow, if indeed they even intend to. It is back to front.
The Celtic Furlough Debate – More of Your Opinions and Ideas | The Celtic Star https://t.co/ufrCG3kgZc
— The Celtic Star Editor (@CelticStarMag) April 1, 2020
So why is the first fall back option to access state funding in the middle of a crisis that is seeing public services hammered at the moment?
If Celtic need this Government help immediately, rather than further down the line then perhaps we’re not in as sound a position financially as we hoped. If we’re having to resort to state handouts three weeks into this, then we certainly need to ensure our high earners are also making the sacrifices the tax payer is making to support our club. Perhaps that example can start with Peter Lawwell, then we could see the senior players follow suit.
I understand Celtic are a PLC yet the club is happy to claim to be a club like no other and have a statue of Brother Walfrid outside. Is that just a nod to history, part of the image to promote the brand?
Celtic have just donated to the Celtic foundation and taken the public plaudits for it, yet we haven’t, the tax payer will be funding that. If we’re indeed a PLC then state intervention being required three weeks into a crisis strikes me as being at odds with that. Are shareholders just for dividends?
I fully accept the government fund can be accessed fair and square and Celtic are perfectly entitled to do so. I have stated I have a moral objection to accessing the public purse before alternative avenues have been exhausted. This is a job retention scheme, it is not, in my opinion, a fund to be taken advantage of at present when Celtic seem in a position to meet their own liabilities, at least the last accounts would indicate a safety net is there. Are these jobs at risk of being retained now? I’d suggest not.
If we are saying football and as such these jobs will be up and running by August, I make that no more than an extra 10/12 weeks, at the most, on top of when the football season would have ended in the last week in May. We’d then have had close season where the club would normally have been closed anyway and staff would have been paid. There will be a delay in income, be it prize money, television or season ticket money but it will be coming prior to that August kick off.
Are we really saying Celtic cannot fund themselves and absorb those wages for 10/12 weeks outside of an ordinary finance model without the need for state intervention? If not why not?
If football doesn’t start until later than August, then access the fund later, not now. Doing it now looks like opportunism when the highest earners are exempt. Once I again I understand they can do so but there is no need to at the present time, not until we get our own house in order.
If Celtic had said we’ll take the equivalent period of the close season and look again in June or July I would have more respect for such a stand. Even if we said we’ll take advantage now but will repay the public purse in full when we are back in a more certain financial position, again I’d find it more palatable and more akin to the ethos of the club.
If you or I were to lose our jobs tomorrow for any reason, the government have a savings threshold we would have to drop below before we could access state benefits. That legislation was passed with much more time for detail and scrutiny than this scheme and such a clause was included. The need for a quick solution meant this scheme has loopholes and as such they can be taken advantage of. We don’t have to though, we could use our savings to support ourselves just like you or I would in the event of a job loss.
And that leads me to the question of insurance, a question The Celtic Star has asked of Celtic before this news came out today. Are Celtic insured?
Aberdeen’s own insurance policy had a pandemic clause included. Do we have the same?
Perhaps the club will be able to confirm if Celtic’s insurance policy includes a clause for specific cover in the event of pandemic and if this policy will cover the entirety of the outbreak’s effect on football operations, or is it time limited to the term of the policy. If so when does that term end, the financial year end or beyond that?
Perhaps there will be more to come from Celtic, more detail to their long term thinking. For now as a public servant myself, as well as a supporter, I find the club’s decision morally questionable to access this money so soon without cutting our own cloth accordingly.
That said, I’d happily reconsider the position should there be more transparency. If we cannot cope for an extra 10/12 weeks on top of a usual period of footballing and financial inactivity then tell us why.
If there is a reason lower paid staff are having to be furloughed and our club has an immediate need to access state help, tell us. If there is an equally valid reason why the highest earners – including our CEO – haven’t set an example first, for the good of the club’s financial security, then let’s see some of that openness and transparency favoured by clubs like Hearts and Aberdeen and let the supporters know.
Niall J
The Government’s 80% Furlough Scheme!
Whilst I don’t necessarily agree with Celtic’s decision to use the government’s furlough scheme for it’s non-football employee’s, I understand why the club is!
If clubs with the wealth of Tottenham Hotspur are allowed to use this as well as the Tory millionaire owner of the Weatherspoons chain to pay his staff which he had refused to do before the Government announcement then why should Celtic be above this?
We should be proud of our club and it’s charitable roots that continue, these have been used during this horrible time to help the most needy!
My employer is using this scheme also and as I write this I await to see if I’m getting paid, my money is usually is in my bank on a Wednesday evening but as of yet I’ve not received this. I’ll also add that my employer isn’t making up the remaining 20%, unlike Celtic!
Finally, this Government scheme requires the goodwill of employers to pay their staff for the first one or possibly two months pay before this can be claimed back. So hopefully our Government can be fair during its evaluation of the company’s using this scheme via means testing or whatever system they choose to use to evaluate whose claim is worthy of pay back!
However my worry with this is that their millionaire friends and backers will receive recompense for their outlay far quicker and easier than our club! If Tottenham Hotspur and their like with all their money they keep going on about get funded by this scheme then our club and we as tax payers as a club and individuals should be too?
If we’re not recompensed by our wonderful government after this worrying time then I hope Niall J can understand why the club’s funds have dwindled and will know who he should be blaming?
Regards,
Raymond Carmichael.
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