Red and White Army raise concerns about long-term impact of EFL 'monitored grant' and write to Sunderland to clarify plans

The Red and White Army (RAWA) is calling on bosses at the Stadium of Light to outline whether they intend to apply for a 'monitored grant' from league bosses.

Sunderland, along with every other League One club, will receive a £375,000 payment as part of the EFL bailout.

They will also receive a portion of a further fund of £15million, distributed proportionately based on lost gate receipts.

As reported, Sunderland are lobbying hard for a greater share of the fund, arguing that the current arrangements do not reflect the hardship a club of this size is experiencing as a result of the exclusion of fans from stadiums.

There is also an additional £20million pot beyond this - known as the 'monitored grant'.

However, any club who receives money from this pot will be subject to future spending restrictions when it comes to transfer fees and wages.

Clubs can break these restrictions, but only if they then repay the money.

RAWA has raised concerns about what impact it may have in future IF the club was to apply for a 'monitored grant'.

A RAWA statement on their website read: "The monitored grant can be applied for from a total fund of £20m for those clubs in the greatest financial need.

"This would be after all of L1 clubs receive £375k each and L1 and L2 clubs have been apportioned their share of £15m based on lost income from match-day attendances.

"Whilst full details are to be confirmed by the EFL it would seem the "crisis funding" from the monitored grant, will come with conditions that restrict the progress of the club, such as paying fees to sign new players and further wage restrictions.

"We are writing to the club to ask if it is their intention to apply for the monitored grant after the standard relief package is received."

The statement added: "Fans are particularly concerned that a move for a monitored grant could have an impact on the progression of SAFC regardless of the makeup of the ownership.

"We continue to lobby for further updates on the potential takeover and to meet with the club to ask all of the questions that RAWA have collated from fans."

This is the support outlined by EFL bosses earlier this month, an EFL statement outlined:

‘Support for Clubs in League One and League Two’

"The relief package will provide a combined fund of £50million for League One and League Two Clubs, with £30million to be paid to all 48 clubs as a grant and a further £20million available on application as a ‘monitored grant’.

Details are as follows:

A £30million grant to be paid immediately from the Premier League to EFL clubs for distribution based on lost gate receipts in respect of the 2019/20 and 2020/21 Season.

Each club will receive a minimum payment of £375,000 in League One and £250,000 in League Two.

The remaining £15m to be distributed using a lost gate revenue share calculation, which will be approved by both the EFL and the Premier League.

In addition, a further £20m ‘Monitored Grant’ is to be provided with clubs able to apply for it based on ‘need’, with a joint EFL and Premier League panel to determine club eligibility.

Clubs subsequently in receipt of a ‘monitored grant’ will be subject to certain restrictions, in respect to transfer spend and player wages.

Clubs who keep to the restrictions will not have to repay any of the funding required, whereas for clubs in breach, the ‘monitored grant’ becomes repayable by the club.

Any club in receipt of a grant or monitored grant payment will be required to continue to maintain compliance with the EFL’s financial regulations.”

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