English Football League chairman Rick Parry has warned that clubs face a “£200m financial hole” by September.
Parry has been giving evidence to the Digital, Culture, Media and Sport committee about the impact of coronavirus on sport.
The former Liverpool chief executive said the EFL needed a “proper reset post-Covid”, with clubs currently “stacking up creditors”.
He said it was “difficult to answer” how many clubs may go out of business.
“Our objective, obviously, is to lose none,” added Parry. “We would like to emerge stronger, leaner and more efficient, with a proper reset post-Covid.
“We have a great deal of uncertainty around next season and the undetermined matter of when we’ll be able to return with crowds, which for the EFL is absolutely critical. We’re much more dependent upon the revenue and atmosphere generated by crowds than the Premier League.”
Parry also said he supported the Professional Footballers’ Association’s appointment of financial services firm Deloitte to look at club accounts and assesses if there was a genuine need for wages to be deferred.
“Our approach really is to say we’re all part of the problem and so we all need to be part of the solution; the clubs, the players and the owners,” he said. “We all need to share the pain.
“We’re having an open-book policy. We’re absolutely on board with the Deloitte process.”
More to follow.