Report: Government grants American football loan due to COVID-19 crisis
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The United States Football Association was successful in securing a loan under the government’s Salary Protection Program (PPP), sources said. ESPN’s Jeff Carlisle.
The PPP is part of the Coronavirus Aid, Relief and Economic Security Act and is designed to provide financial relief to small businesses with fewer than 500 employees. Loans acquired under the program will be forfeited if employees remain on the payroll for eight weeks and the funds are only used to cover wages, rent, mortgage interest and utilities.
The American Adult Football Association – which operates amateur adult gaming in the United States – has also applied for a PPP loan, Carlisle reports.
The coronavirus crisis has caused a period of great upheaval for US Soccer, with the federation announce last week it was about laying off and on leave of staff. If these employees are not rehired, US Soccer will have to repay its PPP loan with an interest rate of 1%.
Multiple media outlets claim that chief executive Brian Remedi and Tonya Wallach, who served as director of talent and inclusion from 2018, were among those US Soccer fired. But there has been no official word from the organization on the couple’s employment status.
In addition, the US Soccer Development Academy, which was launched in 2007, ceased operations last Wednesday due to the financial pressure that “the extraordinary and unforeseen circumstances surrounding the COVID-19 pandemic” were causing. On the same day, Major League Soccer announced that it would launch an elite youth program and grant entry to teams that participated in the now defunct US Soccer academy.
US Soccer was already gearing up for a two-and-a-half-year period with cash reserves of just $ 40 million, according to Carlisle. However, he now faces a worse situation due to the postponement and cancellation of matches during the global emergency.
Things will get more desperate for US Soccer if it loses its equal pay lawsuit with members of the United States National Women’s National Union, which would result in payment by the governing body of a settlement of up to six figures.