Short term EFL lifeline for Luton Town as season is suspended

All fixtures in the UK have been postponed until April 30 at the earliest
Luton will receive almost 1m after the football season was suspendedLuton will receive almost 1m after the football season was suspended
Luton will receive almost 1m after the football season was suspended

Luton Town are set to receive a short term advance of just under £1m from the EFL after the Football League season was suspended until April 30 due to the coronavirus outbreak.

A number of clubs had stated their concern about being able to stay afloat financially with no income, particularly on match-days, leading to severe cash-flow issues.

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However, after an EFL board meeting called to discuss the impact of the outbreak on clubs held yesterday, it was agreed to release a £50m short-term relief fund.

Under the terms of the relief fund, Championship clubs will receive their remaining regular £800,000 basic award payment from the Football League upfront on Thursday, a sum they had mostly been due to receive over the next few weeks, while they will also be able to apply for a £584,000 interest-free loan.

For League One clubs the figures are £250,000 and £183,000, and for League Two sides they are £164,000 and £120,000.

An additional £1m from the EFL Futures pot, a scheme which rewards clubs for giving opportunities to home-grown young players, will be allocated now on a pro-rata basis.

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With the season's suspension being extended until April 30 this afternoon, an EFL statement read: As part of the League's continued contingency planning, the board heard the comments and observations from EFL clubs, before discussing a number of issues including the current financial position and implications, insurance, regulatory matters and broadcasting arrangements.

"Discussions centred on financial relief for clubs in the short term and while there is no one single solution, measures are to be put in place to immediately assist with cash flow via a £50m short-term relief package."

The EFL has also set up a dedicated task force that will continue to review the threat posed by the coronavirus pandemic and the impact on its clubs and competitions.