Newport County braced for 40% income loss due to coronavirus

Newport County chairman Gavin Foxall has warned of "difficult challenges" ahead as the club counts the cost of the Covid-19 lockdown.

League One and League Two were both ended early after a formal vote of clubs on Tuesday.

County expect to lose "40%" of their income and are planning for behind-closed-doors game until January 2021.

"We have to make sure this club gets through the challenging time it has ahead," said Foxall.

"Therefore as a board we have to make some difficult decisions in making sure this club does get through that in the same way every other football club will be wanting to do.

"It is about how we navigate our way through these uncharted waters."

The County chairman has warned some clubs will become "casualties" of the pandemic, though he has praised the English Football League (EFL) for its approach to the "unprecedented" crisis and said the UK Government's furlough scheme had been "enormously helpful" to clubs.

On Friday, County issued a question and answer statement to their supporters explaining the current position and say they will announce initiatives in the next few weeks to help them cope.

Earlier this week, County appealed to supporters not to claim season ticket refunds, having lost four home matches with the shutdown.

"At this level, a significant proportion of our income is a result of fans coming to home games and also fans buying season tickets," Foxall added.

"We don't think we will be able to have fans in the stadium for a fairly long period of time.

"We believe that will be in January of next year and that for us - along with the reduction from a commercial perspective - is about a 40% loss of our traditional revenue.

"However you dress that up that is very difficult for any business, no matter how they are run, to sustain for a period of time.

"As a board we have put a number of different plans in place and have put in measures to ensure the club is able to navigate itself through these very difficult times."

Foxall admits the planning will inevitably affect player recruitment for manager Mike Flynn, though many of County's current squad are on extended contracts. The retained list will be issued later this month.

Salary cap 'likely in League Two'

Newport County chairman Gavin Foxall with the FA Cup before the club's 2019 tie against Manchester City, which gave the Exiles a big financial boost

"What supporters need to be aware of is that given the economic downturn it is difficult to generate the revenues as we ordinarily would have.," said Foxall.

"We have to make sure we are prudent with what we have and how we manage that.

"The other big thing is that it looks highly likely we will have a salary cap for League Two.

"I think that will help enormously. It is probably the reset football needs at this level."

While Foxall is confident County, whose finances have been boosted by recent FA Cup runs, will steer their way through, he believes some clubs are under threat.

"It is probably inevitable there are going to be some clubs are who are unable to get through what are very difficult times, because you are still carrying the costs you have today without any income coming in for a prolonged period of time," he added.

"It doesn't matter what business you are, that's difficult to sustain. Some clubs are already starting in a difficult position. So, sadly, I think it's inevitable there will be casualties along the way."