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Gareth Southgate takes pay cut as English FA warns of £150m loss due to coronavirus

England manager volunteers for 30 per cent drop in salary to help protect the jobs of less well-paid employees

England manager Gareth Southgate is paid £3m a year after signing an improved contract in 2018. PA
England manager Gareth Southgate is paid £3m a year after signing an improved contract in 2018. PA

Gareth Southgate will take a 30 per cent pay cut as the Football Association believes it could lose more than £150 million (Dh676.6m) due to the coronavirus pandemic.

England manager Southgate is paid £3m a year after signing an improved contract in 2018 as a reward for reaching the World Cup semi-finals.

But he volunteered for a 30 per cent drop in his salary to help protect the jobs of less well-paid employees as the governing body proposed a sliding scale so its top earners give up most.

The FA is considering furloughing employees, whereby the British government would pay up to 80 per cent of their salary up to £2,500 a month, as it considers how to deal with a shortfall of at least £100m in its accounts.

Wembley was due to host seven games in Euro 2020, including both semi-finals and the final, before the tournament was rescheduled for 2021 because of the Covid-19 virus.

England have already had to postpone March friendlies against Italy and Denmark, which were due to be played at Wembley, plus June matches against Austria and Romania.

The FA have also had to postpone the FA Cup quarter-finals, semi-finals and final, with no dates being announced for rearranged games and the possibility they will have to be played behind closed doors.

The three Football League play-off finals were also set for Wembley and while August concerts with by Westlife and the Eagles are yet to be called off, there is the risk that they cannot go ahead.

FA chief executive Mark Bullingham said in a statement. “We've taken an immediate and significant financial impact due to the postponement of England internationals, Emirates FA Cup matches and Wembley events, and there is currently no clear timescale on when they will return.

“The total financial impact is currently forecast to be around £100m, but it could easily exceed £150m depending on the duration of the government’s necessary medical measures.”

Phil Neville, the manager of the England women’s team, is another who will take a pay cut during the current break from football.

Bullingham added: “We want to take prudent and appropriate steps to help protect and support the FA and our employees during this unpredictable time.

“We are proposing that all employees earning £50,000 or more per annum will take a temporary pay reduction of 7.5 percent.

"In the spirit of those on higher salaries taking the greater responsibility, the Senior Management team have agreed to cut their pay by 15 per cent with the highest earners in the organisation agreeing to reduce their pay by up to 30 per cent.

“We are also looking into what options are available to us through the government’s furlough scheme as a contingency plan, while we continue to plan for the return of football, once it is safe to do so.”

Southgate has followed in the footsteps of England rugby coach Eddie Jones who, along with the Rugby Football Union’s executive team, has taken a pay cut while the centrally contracted cricketers gave up a combined £500,000 from their retainers for the next three months.

Meanwhile, West Ham manager David Moyes has become the third Premier League manager to take a pay cut, after Bournemouth’s Eddie Howe and Brighton’s Graham Potter, with Liverpool’s Jurgen Klopp reportedly willing to join them.

Serie A recommended players and managers’ annual pay in Italy should be cut by a third if the season does not restart due to Covid-19 and should be reduced by one-sixth if it does.

Some clubs have already agreed measures with players, with Juventus waiving salaries for March, April, May and June.

Updated: April 6, 2020 07:05 PM

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