Hull KR have announced they could be facing a short fall of approaching £2m in 2021.
Owner Neil Hudgell revealed the club is in a precarious position. After everything was taken into consideration, they are still £500,000 short on their 2020 forecasts.
He also confirmed they would be using the government loan to help absorb the short fall.
Hudgell told the club website: “Financial forecasts show that even with Government support, wage reductions, grants, and furlough payments we stand to be behind forecasts to the tune of £500,000 in 2020.
“Before we factor in loan support and other reductions, in 2021, our estimated shortfall is approaching £2 million.
“In previous years, the Club has been supported by myself, and other Directors, to the tune of £500,000 and more through loans and sponsorship. Revenues in my various businesses are compromised and that position continuing is not an option.
“Whilst it was something we were hoping to resist, we are going to have to make use of the Government loan. It will be needed, in part, to cashflow us until the end of this year and to absorb a significant part of the shortfall in 2021.
“There is uncertainty around the terms of repayment of that loan, but it can be assumed that there will be a considerable number of years over which we will continue to bear the effects of this current crisis.
“I am not comfortable straddling the club with long term debt (it currently owes little other than to me and my companies) but there is not a choice I am afraid.”