Hull FC chairman Adam Pearson has expressed his disappointment and frustration at the lack of support from banking partners, as the club continue to analyse and respond to the ongoing effects of the Covid-19 pandemic.
Like all sports, Rugby League is reeling from the effects of the ongoing crisis, with all fixtures suspended until further notice and income streams now frozen.
The club continues to work closely with Super League and the Rugby Football League to explore all options available to them to help ease the financial pressure of this period, as well as government backed schemes such as furlough, the Coronavirus job retention scheme.
However, one aspect of the recently announced support package has failed to deliver any benefit to Hull FC so far, despite weeks of detailed preparation and analysis for a bank loan with Barclays bank coming to nothing.
“We have produced five different detailed applications to Barclays over the last six weeks having been amongst the first off the mark to explore what support they could provide us with, before eventually just getting told they can’t help us,” explained chairman, Adam Pearson.
“Their excuse is that the previous owners of the club racked up more debt than half their share capital. I consider that to be nonsense, since my ownership of Hull FC over the last nine years we have at least broken even and yet they still want to apply and fail us against these criteria.”
The disappointment comes after a suite of measures were announced to allow businesses to access cash flow support in the form of government backed loans from all major lenders, including Hull FC’s long-term banking partner, Barclays.
However, after a lack of any meaningful support or guidance, for a club that has been operating for over 155 years, Pearson believes the banks have a responsibility to do much more to provide relief during this crisis.
He said, “Mr Hammerstein [Barclays CEO], I ask you how many loans has your bank actually written under this civil scheme?
“It has nothing to do with the 80% guarantee, it is the banks that hide behind these rules to avoid providing adequate and much needed distribution of government loans.
“If that is the case, then at least have the decency to come out and say that to long standing customers who are in need of support.
“Mr Hammerstein, please be honest with people, hardworking people with good businesses, and let everyone know how few loan applications you have actually accepted. You are killing proud, British and well-established businesses, on the front line.
“After the experience we have had, which I know is shared by many, I felt compelled to share these views, in the hope it may help others in the future.”
Meanwhile, the club continue to analyse the ongoing financial implications of the crisis whilst awaiting news of any potential government support being discussed with the RFL.
A number of other fundraising measures are also being considered and prepared should they be required, as well as planning for the long-term effects on the club and supporters for when the sport does resume.
Over the next couple of weeks the club will provide further information on these points and would like to thank fans and sponsors for their impressive loyalty and support over recent weeks, which hasn’t gone unnoticed and may need to be called upon again in the future.
Everyone at the club hopes all of our supporters remain safe and healthy during this uncertain and challenging time and we look forward to welcoming them back to the KCOM Stadium soon.
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