Manchester City become first Premier League club to confirm they will NOT put staff ‘on furlough’

Manchester City have become the first Premier League club to confirm a commitment to paying its entire non-playing staff in full during the Coronavirus pandemic.

The move to avoid furloughing was agreed last week before being ratified at board level on Friday morning.

City’s chief operating officer Omar Berrada relayed the news to hundreds of employees in writing over the weekend.

Manchester City have become the first club to commit to paying non-playing staff in full

Manchester City have become the first club to commit to paying non-playing staff in full

City’s chief operating officer Omar Berrada has informed them they will not be furloughed

City’s chief operating officer Omar Berrada has informed them they will not be furloughed

City's players remain in discussions with the league and PFA over possible wage deferrals

City’s players remain in discussions with the league and PFA over possible wage deferrals

WHAT IS THE GOVERNMENT’S FURLOUGH SCHEME? 

When an employee is placed on furlough they are temporarily put on a leave of absence and not paid, although they remain on the payroll, meaning that they do not lose their job.

This could be because there is no work for these employees, or that the company is not able to afford to pay them, because of the effects of the coronavirus crisis.

In the United Kingdom, the Government is offering to pay 80 per cent of a furloughed employee’s wages, up to £2,500 per month, until they are able to resume their job full time. The Coronavirus Job Retention Scheme will last for at least three months from March 1.

Five top-flight clubs have opted to furlough a proportion of their staff, with leaders Liverpool the latest and heavily criticised for taking advantage of the government’s job retention scheme.

City will take a significant financial hit over the coming weeks and months but Berrada told their workforce that there is a determination to protect jobs.

Those projected losses have been offset by American private equity firm Silver Lake’s £389million investment for just over 10 per cent of the City Football Group in November.

‘We can confirm, following a decision by the Chairman and Board last week, that Manchester City will not be utilising the UK Government’s Coronavirus Job Retention Scheme,’ a spokesperson said. 

‘We remain determined to protect our people, their jobs and our business whilst at the same time doing what we can to support our wider community at this most challenging time for everybody.’

Like all other Premier League clubs, Pep Guardiola’s squad remain in discussions with the league and PFA over wage deferrals and how that money is eventually spent moving forward.

Jamie Carragher led the criticism against his former club Liverpool by posting online

Jamie Carragher led the criticism against his former club Liverpool by posting online

Daniel Levy also came under criticism after announcing non-playing staff would be furloughed

Daniel Levy also came under criticism after announcing non-playing staff would be furloughed

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