National League clubs received grants at the start of the season and appear to have felt that more grants would be available in the second half of the campaign.
In a statement, Halifax said it welcomed the vote to end the National League season, but that club funds are now “severely cut”.
The city says it needs to take the loan from Sport England to cover the costs, and the National League and the government have made it clear that only loans, not grants, are available.
The club said the decision was a “last resort” but it was the best option under the circumstances. They did not disclose the loan amount.
The club statement said: “Following last week’s announcement, we are truly delighted that the consultation with member clubs by the National League regarding the results of the 2020-21 campaign has resulted in the continuation of the first step. of the National League. It is really unfortunate for Step Two, North and South where the decision was made to conclude the season and we are thinking of the clubs that wanted to continue. This result protects part of the integrity of the competition and rewards the efforts of all the National League clubs who have worked tirelessly throughout the season so far. Of course, we are also delighted for our loyal supporters and sponsors who have supported us during the turmoil of the last year.
“However, this decision is not without financial consequences for our football club. We are of course extremely grateful for the initial funding which was provided by the National Lottery in October, November and December of last year. The grant provided the security of being able to engage in player contracts, employment of staff and actually being able to start the season. Many of you are aware of the utterly unacceptable situation we are facing today , no additional funding being available. This was not the understanding of all 63 clubs currently in the National League to begin with, in case we are still in a lockdown situation due to the gravity of the situation surrounding the pandemic Hopefully clarification will be provided in due course as to why we are facing this situation. available in January and February, club funds are now severely depleted. The current “message” from the National League and the government is that only “loans” are available in the future and not “grants”, which puts us in a difficult position. The grants received so far are significantly less than what is needed to run the club for the entire season, when the majority of our normal sources of income are totally exhausted. This is not the club’s fault.
“With that in mind, we made the extremely difficult decision and the only way ahead of us now, we know the season will continue, is to take out a low cost loan from Sport England to protect the little one’s future. Sport England are the designated loan provider for all clubs in the National League. This is of course a last resort as we have been out of debt since 2008 and do not sit comfortably at all. loan is necessary to ensure that we can cover our fixed costs, variable operating costs, salaries for the remainder of the season and any commitments to season ticket holders if we do not have access to Shay Stadium before the end The loan will also be partly needed to protect the financial viability of the 2021/22 campaign if we again have to manage with reduced capacity or if commercial and sponsorship income is limited due to reason. n unstable landscape. Overall we think this is the best option for the club given the situation we found ourselves in. We are certainly not the only ones making this decision.
“Thank you once again for your incredible support, for supporting with us through this most difficult season and let’s keep our fingers crossed for some normalcy over the next few months.”