The National League is responsible for the financial situation its clubs are facing

It has been a catalogue of errors when it has come to the National League and financial issues during this season. The problems have manifested to the point where the only sensible option seems to suspend the campaign.

The league was meant to kick-off in October with fans in attendance but the government did not allow this. A £10 million bailout - in the form of grants -  from the National Lottery and the government was required to start the season to make up for the loss of income clubs would not receive without fans.

Immediately, the fiasco started. The National League did not allocate the money based on the average attendance of every club. Six Step 1 clubs - Chesterfield, Hartlepool, Notts County, Stockport, Torquay, Wrexham and Yeovil - received £95,000 a month where as the other 16 sides got £84,000 a month. The distribution model also meant six Step 2 clubs - Chester, Dulwich Hamlet, Hereford, Maidstone and York - were given £36,000 a month and the rest £30,000 a month.

Boreham Wood, for example, in Step 1 have an average attendance of 724 got £84,000 a month where as York City of Step 2, with an average of 2,194, were given £36,000. This mismanagement of funds resulted in the resignation of Chief Executive Michael Tattersall. Nine Step 2 clubs called for Chairman Brian Barwick to follow suit, but he has not yet left his position.

An independent review panel, chaired by former FA Chairman David Bernstein, was set up by the League, keeping an agreement to have its payment method examined. Bernstein wrote a letter to the League, and it was damning.

Bernstein spoke of the "imbalance" in the National League's funding method and was "concerned" it would be the same payment method for the month of December (it was). It was this letter that caused the clubs to demand Barwick's resignation.

Funding was secured for the first three months of the season and the National League expected more grants to come to finish the season. The Department for Digital, Culture, Media and Sport (DCMS) offered £11 million in the form of loans. Clubs made it clear they would only start the season if the financial support came through grants and would not have done if it was a loan.

The National League allege the government agreed to continue their support through the form of grants but the DCMS suggest that "it is untrue to suggest funding was ever promised as all grants, and they have been unable to substantiate this claim."

Anybody in business knows that if a deal is brokered to get it in writing. Now it is just hearsay and the government can brush the league aside. Their case has no legal standing.

A meeting was convened on Wednesday between member clubs to find a solution. Three options was considered:

1. Clubs take on loans themselves
2. The National League takes on the loan with payments to the clubs
3. Suspend the season.

The majority of Step 2 clubs voted for option 3, which is why there is now a two-week suspension of the North and South divisions. A unified approach would be expected but clubs in Step 1 showed a preference for option 2 and they have continued playing.

It now seems that option 2 has been taken off the table. Clubs would never actively put themselves in debt by taking on loans and the idea of the National League taking on the loan seemed far-fetched from the beginning.

Suspending the season seems the most likely outcome unless the offer of a loan can be miraculously turned into grants. Null and void as the final outcome would make sense as promoting or relegating clubs based on points-per-game with less than half the season played.

This government has U-turned on many decisions before but they are standing firm on this. If a deal does happen, there should be no praise shown for the National League, whose amateurish handling of finance during the pandemic has put their clubs in a damaging situation.