Hatters CEO remains in the dark over how £125m from Premier League will actually help Luton

Luton Town chief executive Gary Sweet remains in the dark as to just how much the Hatters will benefit from the £125m of funds being advanced from the Premier League to EFL and National League clubs.

With the country currently in lockdown due to the coronavirus pandemic, meaning the football season has been postponed indefinitely, it was announced two weeks ago today that the top flight clubs were putting measures in place to help with the failing cashflow of teams lower down the pyramid.

A statement read: "The League unanimously voted to advance funds of £125 million to the EFL and National League as it is aware of the severe difficulties clubs throughout the football pyramid are suffering at this time."

However, when asked just how this would actually help the Hatters in these dire times, with season ticket revenue the club's only real income at the moment, Sweet said: "We don’t know what it means for Luton for the £125million, because, essentially, there's no new money, it's brought forward from next season.

“So, our cash flow challenges are in the immediate future, but then actually in August, where we planned to see income because of the various games we're going to play some of those Football League and Premier League distribution (deals).

“The Premier League providing monies for the Football League, to be able to bring those balancing payments forward, it helps us a little bit now but all that does is push the problem down to August.

“There is no point in starting games in October if we fall off the edge of the cliff on the first of August."

Although Sweet was grateful for the financial aid, he wasn't sure if it was dependent on what league the Hatters found themselves in, as ahead of the suspension, Town were in the bottom three of the Championship.

He continued: "Every single bit of assistance we get from any authority is always most grateful, but we haven't seen any of that money yet either because the league, frankly, don't know how to distribute it, because it's done on a divisional basis.

“If you look at us, we could be in League One or the Championship and the difference in that distribution between League One and the Championship, for that particular part of the fund, is huge.

“So, it could be either next to nothing or it could be quite a significant payment.

“So what if they decide we are a Championship club and let's have that Championship component distribution and then we get relegated, how do they get the money back from us when we've already spent it?

“It's just an impossible situation for them, really, because the Premier League hasn’t given them the authority to effectively give that money away.

"It's a forwarded advance payment from next year so, at the moment, is of no value at all.”

Sweet has stated before that the Premier League should be be dipping into its £1.5bn cash reserve to help out clubs in need through these incredibly tough times.

He was eager to reiterate that plea once more, although also felt the PFA could be doing more as well, adding: "Any authority in football that has a bank balance, it isn't time now to sit on it for a rainy day.

"This is the rainy day, this is a storm and there's no point in counting your interest, if there's not going to be a business next year.

“This is where the football family has to come together and that includes the Football League and the PFA, not just the Premier League.

"The PFA have a significant fund too and we've yet to see any of that.

“We’ve got to cut the wages of footballers salaries somehow and the PFA have a significant pot sitting behind them.

"So, it's not just about the Premier League and the Football League.

"I know it's costing all of us money at the moment, but there are some cash reserves available.”