Covid in Scotland: Director pay and bonus rules for SPFL clubs' loan

SPFL clubs have faced financial difficulties after fans were banned from stadiums as a result of the pandemic

Strict conditions over director pay and bonuses have been attached to emergency Covid loans issued to Scotland's top football clubs, it has been revealed.

A total of £25.2m in interest-free Scottish government loans have been given to 11 SPFL clubs.

New details of the deals show senior management at the clubs are banned from collecting bonuses and above-inflation pay rises until the money is paid back.

Quarterly financial reports are also being issued to ministers by the clubs.

The first repayments are due in September next year but the loan agreements, released to BBC Scotland under freedom of information laws, show the Scottish government can delay this if requested by the clubs.

Any "threatened change in the financial position" is expected to be reported to Scottish ministers immediately and in the event of any club with a loan going into administration, the unpaid money is expected to be paid back with interest.

The conditions affect senior management and directors of the football clubs but not coaching staff.

Rangers have borrowed the most from the Scottish government's Premiership Division Support Fund, followed by Aberdeen and Motherwell.

The only club in the top flight not take advantage of the government loans was Celtic.

Clubs that played in the leagues below the Scottish Premiership last season were given grants instead of loans by the Scottish government despite some protests by the top-flight clubs about the parity of this arrangement.

The borrowing rules state the loans can not be used to pay off existing commercial or director loans and bans most dividend payments.

The Scottish government also expects the 11 clubs to provide it with quarterly financial reports including a balance sheet and actual cash flow against budget.

Repayments of the loans, in equal monthly instalments, is due to start by 1 September next year and end by 2042.

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