The Celtic Furlough Debate – Why Peter Lawwell has made the right call

Niall J has this evening argued that Celtic CEO Peter Lawwell has made the wrong call in taking advantage of the Government’s furlough scheme which basically pays workers in non-essential industries up to 80% of their salaries to remain at home, basically idle as far as working is concerned.

Celtic have, unlike many businesses, stated that the 20% difference will be made up by the club so that no Celtic employee will suffer financially as as a result of the coronavirus pandemic.

Peter Lawwell should make it clear that the high earners at the club, himself included, and all of the first team squad (to be clear the mens team) are also committed to accepting a percentage pay-cut over the next period, certainly until football is going to return.

Our belief is that this will be in August when the league will resume and the current season will be played to a conclusion before the next one commences. So the NULL AND VOIDING chancers are not going to get their way. Celtic will have our Champions party this summer.

French TV giants Canal Plus have told the French league to forget all about their current TV deal and the payments that are due in June. They point to the games lost to both the pandemic and also Les Gilets Jaunes protests that resulted in broadcasting of games being cancelled. Come back and see us when the pandemic is over and you have games that are 100% happening and we’ll talk again.

Meanwhile in England there are fears that around £762million due to be paid to the Premier League clubs in July won’t happen if this season is not completed, games played and TV audience and subscription money return. The Celtic Star told you a week or so ago to pause your Sky subscription if you have it. If you haven’t done so do it now.

Celtic went into this pandemic as a well run club with trophies in the boardroom and money in the bank. The club donated via the Celtic FC Foundation £150,000 to help those in most need during this crisis and this money has subsequently risen to £175k. For comparison, both Manchester clubs donated £50k each while the Rangers dropped off two second hand tubs of hand wash to a nursing home.

Celtic have groundsman, coaches at all levels, kitchen staff, hospitality staff and shop staff and so on and just like retailers like John Lewis or the hotels like Gleneagles of Dunblane Hydro – where Celtic players often stay – these workers, folk like you and me, are no different just because they work for Celtic PLC.

All of these workers should be protected through the Government scheme and none should be out of pocket or suffer financial hardship as a result of this health crisis. The Government asked employers to make up the 20% difference and Celtic PLC has done this, unlike it has to be said, many bigger and wealthier businesses.

The players and Peter Lawwell’s salaries are different matters. It would be nice to know that we are all truly in this together as far as our club goes and that Celtic players have all taken a sizeable percentage pay-cut. None of them are in danger of going hungry. And Peter Lawwell is the highest paid non playing employee in the club’s history, he is a multi-millionaire and if he never earned another penny again he’d still be a very rich man indeed. Real leadership in a time of crisis is what we need and if he offered to suspend his own pay until the first ball is kicked again then he will do a great deal to improve his own standing. When Celtic historians in the future write about his time at Celtic mentions will be made of heated driveways (unfairly as it happens), huge million pound bonuses and what he did during the coronavirus crisis. If it was to take his pay regardless then that soils his legacy, pure and simple.

But it should be noted that Celtic PLC always pays its dues to the taxman – unlike some we could mention – and will do so again when this is all over.

Some feedback from readers to Niall’s article below…

DISGRACEFUL

“Disgraceful. Seriously contaminates our position in terms of decency. I am being asked for £3.6k for 2 season tickets for 20/21!!! Family club position seriously eroded. Mr Lawwell man up, senior players step up or always be open to operating double standards,” writes David Cunningham.

A POOR DAY FOR THE CLUB

“If the info is correct and as of yet the players haven’t had or offered to take the above it’s a blunder, simple as that. Most players can afford it and would understand the situation but for other staff to take it at this time is both disappointing and a grave error by the club. If the info to-date is correct this is a very poor day for the club,” says Fred Stevenson.

GAME OVER

“Totally agree with Niall’s article and if I was the Chancellor I would require these clubs to undergo a means test and would suggest these highly paid people take a pay cut or give up this year’s bonus to help pay the salaries of those not so fortunate. If they refuse I would cancel the scheme for them they have made enough money over the years. If they can’t manage their finances and save for a rainy day that’s their problem, GAME OVER!” states Jim McGuire.

BROTHER WALFRID PLC

“If the players and executives took a 25-50% wage cut, then with what the club would save on PAYE and NI contributions they would more than cover the remaining staff costs. There would also be a surplus in monies that could be used for charities helping people who are really struggling during this crisis. And if Mr Lawwell was to forgo his huge bonus more money would be available. The club could pay all of the staff invest in local causes cost neutral. Let’s lead the way as brother Walfrid would have wanted,” Hammie argued. (Forgetting that Brother Walfrid was not actually a PLC!)

LAWWELL CAN’T WIN

“It wouldn’t have mattered what decision Peter Lawwell made it would have been the wrong one. He and the club are right to take account of the government scheme. There are bigger companies that Celtic taking advantage of the scheme. There are also companies limiting staff wages to the 80% value or the £2500 limit. This situation could be with us for 6 months. The scheme is there to protect employee jobs.

“Once this is over we will need to start the payback process. At that point the right thing will be to ask those with the deepest pockets to contribute more. A much fairer way to deal with the issue. It is a completely ludicrous idea that celtic should not take advantage of the government scheme to protect jobs. The bad employers are paying people off and leading to 950000 new claims for universal credit,” Charles Broadfoot states.

INCIDENTALLY THE RANGERS WERE IN QUICK

Incidentally someone on twitter reckoned that the Rangers had played a blinder in letting Celtic announce this first so that they would take the flak that inevitably would come their way. That isn’t actually correct, the tax dodgers were right in there as soon as this club was announced and the workers – similar to the ones that Celtic are paying the extra 20% to make up the wages. That, we understand is not the case at Ibrox.

Yesterday we submitted a list of detailed questions to Celtic – and we are awaiting answers. This subject was covered, as was concerns about season ticket renewals, support for fans who need time to pay their season tickets, the threat to null and void the league and so on. The comments earlier re an August re-start to finish this season and the more relaxed nature of articles on The Celtic Star today re the Null and Void threat should allow you to put two and two together.

Our questions to Celtic are for Peter Lawwell. We are NOT anti-Lawwell but we are not in his back pocket either. The Celtic Star is an independent Celtic fans site, owned and operated, and when necessary we will help you hold the club to account.

On this occasion Celtic PLC is in my opinion correct to have taken up the Government’s Furlough scheme but they should have done so after telling us about the financial commitment the high earners are making and that includes the players, manager and of course the CEO himself.

KEEP sending us your comments – email editor@thecelticstar.co.uk – and we’ll get more opinions up later this evening.

About Author

The Celtic Star founder and editor, who has edited numerous Celtic books over the past decade or so including several from Lisbon Lions, Willie Wallace, Tommy Gemmell and Jim Craig. Earliest Celtic memories include a win over East Fife at Celtic Park and the 4-1 League Cup loss to Partick Thistle as a 6 year old. Best game? Easy 4-2, 1979 when Ten Men Won the League. Email editor@thecelticstar.co.uk

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