Falkirk furlough staff but pledge to top up wages to 100 per cent

The Bairns will make up the shortfall in wages too after the Government’s 80 per cent contribution under the Coronavirus Job Retention Scheme.

A core team will remain working for the club during the initial three-week period, which could be extended under the government terms and depending on the ongoing discussions with football authorities on the status of the game.

In a club statement, chairman Gary Deans said: “Like any business when our outgoings overtake our income we have to take action. The board of directors has taken the decision to utilise the support of the Scottish Government and almost all of the players and staff have been placed on furlough from April 1.

“We have kept a small team essential to the core operations of the club and to prepare us for when this all ends - as it will.

“We have reached an agreement with our staff to take a leave of absence for the coming period and the UK Government will cover those staff members’ wages during the period and the club will meet the remaining 20 per cent.

“This means no employee of Falkirk football club will be left out of pocket. We want to support and help everyone but we will have to keep this under review. It is important we look after our people as well as the club’s finances and this is a way to do both.

“We can do this because we have the resources to do so and I’d like to thank those at the club who have managed our finances carefully over recent months which enables us to take these steps.

“Our playing staff are extremely professional and although furloughed I know Lee [Miller] and David [McCracken] are holding them to the highest levels of physical fitness so that when football returns they will be able to hit the ground running, literally.”

“The decision to furlough workers was not an easy one but given that the vast majority of our staff are at home unable to take part in training or play games of football was the most logical one. The freeing up of 80 per cent of the wage bill is a massive shot in the arm, and coming with the firm foundations at the club before the COVID-19 situation, we expect to come out at the other end in a stable position.”

Mr Deans had previously told The Falkirk Herald the club was prepared to manage the situation through the drop of income and had plans in place.

That meant the Bairns would not need to seek additional funding from external sources in the immediate future, as Raith Rovers and Stirling Albion have recently.

The Fife side, one point ahead of Falkirk in Ladbrokes League One when football was suspended last month, sought to raise £25,000 in a crowd-funding appeal and have also placed their playing squad on furlough.

The furlough scheme means companies adversely affected by the coronavirus outbreak and subsequent preventative measures can apply to have 80pc of employees wages covered by a government fund while the individual takes a leave of absence away from the company. An employee can not undertake work for or on behalf of the organisation during this time. While on furlough, the employee’s wage will be subject to usual income tax and other deductions.