The cost of saving British sport: £1billion-plus bailout as clubs face oblivion with another six months of lockdown

The Premier League and Government are on a collision course over a rescue package for British sport totalling more than £1billion.

Boris Johnson announced on Tuesday that the return of fans to stadiums would be indefinitely postponed, with this and other new lockdown measures lasting "perhaps six months” and having "profound consequences".

Ministers are close to signing off on a detailed bailout to offset the subsequent multi-million pound loss of matchday revenue, with the Treasury hopeful of agreeing to a support package within days.

On Tuesday night rescue talks escalated between governing bodies and the Government with the Prime Minister and his Cabinet determined to ensure the Premier League - the world's most wealthy domestic competition - takes the lead in stopping the footballing pyramid collapsing this winter with a £200m package having been proposed.

While the Premier League told ministers it remains willing to show "solidarity" with the lower tiers, one source close to the talks likened the situation to a "standoff" because of concerns raised by a host of the division's smaller clubs. Brighton, for example, have previously told the Daily Telegraph they would have to make job cuts to afford to support the English Football League before crowds return.

After a summer in which Chelsea, Liverpool and Tottenham have spent almost £400million between them in the current transfer window, there remains little sympathy at Whitehall - or amongst the three lower divisions - at their comparative plight. Andy Holt, the Accrington Stanley chairman, told the Daily Telegraph the package should be easily affordable for the biggest clubs. Joey Barton, the manager of League One Fleetwood Town, added that “Armageddon” was coming unless footballing wealth was redistributed.

The Premier League has been in weeks of discussions with the EFL. On Tuesday Sean Dyche, the Burnley manager, defended the position facing smaller clubs in the top tier.

“If the Premier League can do their bit to enhance the chance of other teams surviving, and when that is needed, possibly they’ll step in," he said. “But if you are going to apply that rule of thumb, does that mean every hedge fund manager that is incredibly successful, are they going to filter that down to the hedge fund managers that are not so successful?

"There’s lots of different businesses out there making huge sums of money that could therefore protect similar lines of business but lower down. If you are going to apply it to football, I think you have to apply it across the country to everyone and every business.”

However, Barton said it would be "absolutely wrong" if the elite fails to step in to help. "We have to protect the game from itself," he added.

The overall Government bailout aims to protect the majority of 600,000 jobs across the sporting sector, but payouts will be restricted to projected loss in gate receipts over the coming months, the Daily Telegraph understands.

In domestic football these stand at £1billion and climbing since lockdown began in March. Rugby union is facing potential reductions in revenues of £344million, while racing is braced for a £300million hit as the coronavirus second wave tightens its grip.

The scale of the crisis facing rugby was laid bare by the Rugby Football Union. Following crisis talks with Culture Secretary Oliver Dowden, chief executive Bill Sweeney expressed deep concern over the loss of crowds at Twickenham for the Autumn Nations Cup, as well as in the Premiership and Championship.

“With no fans this autumn we will see a £122m reduction in revenue resulting in a loss of £46m and with no fans for the Guinness Six Nations [this will increase to] a £138m reduction in revenue with a loss of £60m thereby preventing investment in areas such as the women’s elite game and community rugby," he said. “Premiership and Championship Clubs will face significant financial hardship [estimated at £120m]. Our community rugby clubs, many of which run grounds at the heart of their communities are under threat. Without crowds and league games community rugby will lose an estimated £86m in revenue this season."

With talks ongoing over the Premier League and EFL, ministers appear closer to agreeing to foot the bill for matchday revenue losses in rugby, racing, Women’s Super League football, men’s National League non-league football and at the Football Association.

Numerous other sports are also in dire need of an emergency Covid-19 bailout similar to the £1.57 billion that was provided in July for the arts sector, but fresh bailouts are likely to include loans or grants limited to those who are losing crowds over the coming months.

"It's the start of an economic challenge for everybody, and we need to look at areas in most need," a Whitehall source said. "The Premier League and EFL are talking to each other. It's a plain fact that the numbers in football are different. It's public money so we will look at everything."

Sports who attended the meeting with Mr Dowden were told to prepare for the absence of fans potentially until the end of March. That date will be kept "under review" if virus numbers fall again or if more effective drugs are rolled out.

Announcing new measures to impact upon all sectors, Mr Johnson announced earlier in the House of Commons how indoor sporting restrictions would now be included in the current rule of six measures. “We will also have to extend the rule of six to all adult indoor team sports," he said.

The rule change means recreational indoor team sports such as netball and basketball will be banned. Elite indoor sports and those played by children will be exempt. Michael Gove, the Cabinet Minister, had said earlier that the planned Oct 1 return of crowds was now impossible due to the risk of "mingling" between spectators.

The Premier League, which will extend the number of matches released to broadcasters in the coming months, indicated in a statement that it still believed crowds were safe to return.

"Football is not the same without attending fans and the football economy is unsustainable without them," the league said. "Last season, Premier League clubs suffered £700m in losses and at present, our national game is losing more than £100m per month. This is starting to have a devastating impact on clubs and their communities."

The EFL was one of few governing bodies not to appear among a list of more than 100 leaders from across the sector to warn Mr Johnson on Monday that sport was facing a potential “lost generation” without an emergency recovery fund.

Almost half of all public leisure facilities were unable to reopen when lockdown measures were eased in July and 6,000 permanent and casual jobs in the sector have already been made redundant or ceased to exist.