The Manchester United legend said it would present a chance for fans, teams and players to pay fitting tributes to the late monarch, but talkSPORT's Simon Jordan has insisted it is 'absolutely the right decision' to have a break in action.
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Premier League and EFL chiefs announced on Friday that all fixtures scheduled between September 9 and Monday September 12 have been postponed as a mark of respect to Her Majesty the Queen, who passed away on Thursday afternoon at Balmoral Castle at the age of 96.
The Football Association also later confirmed that all fixtures across the men's and women's game have also been called off, including games in the Vanarama National League and Women's Super League.
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The decision has split opinion with fans, with some keen to follow the period of national mourning following the death of the monarch, while others see no reason why games should not go ahead.
One of those is Neville who, together with Talk TV presenter and Arsenal fan Piers Morgan, said matches should be played.
"Sporting events should go ahead," Morgan wrote on Twitter.
"A) The Queen loved sport and B) It would be great to see/hear huge crowds singing the National Anthem in tribute to Her Majesty, as West Ham fans did so magnificently last night."
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West Ham, Manchester United and Arsenal all paid tributes to Her Majesty on Thursday night as their games in the Europa League and Europa Conference League went ahead.
"I agree Piers," replied former United and England defender Neville. "Sport can demonstrate better than most the respect the Queen deserves."
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However, football league chiefs have been backed in their decision, with talkSPORT pundit Jordan and former FA chairman Greg Dyke both insisting it was the correct call.
"I think it's about right," said the White and Jordan host.
"In other areas of commerce, for example Selfridges have decided to close for today but will open again tomorrow, but I think sport has a very different dynamic.
"There is an element that you want society to go on and look forward. We have a new King coming and this is the natural order of events, but it is also a unique and unprecedented set of circumstances - we have lost our Queen of 70 years.
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"I think it's important that sport steps back, certainly for this weekend and certainly for the day of the funeral. I think that's absolutely appropriate and sensible.
"Some people will want the distraction or want the games to go ahead… there will be people who have spent money on train fares and hotels, and I could say that they are only thinking about themselves, or perhaps it's a fair point.
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"But there are certain events and moments in time where you just have to stand back and nothing takes precedence, nothing becomes more important.
"So I think it's absolutely right that the initiative from the government is 'we'll leave it with you, but we kind of expect a mature, sensible and reflective attitude'.
"Not everybody in the country supports the monarchy, but the bulk of people do and it means a lot to a lot of people.
"So while we saw the reaction from West Ham during the game where they sang God Save the Queen and there was enormous outpouring of emotion, I think it's appropriate that the nation stands back from this moment and reflects without distractions.
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"And we can live without it. I think this is a moment in time where you have to say, 'no balls get kicked, no balls get bowled, no punches get thrown, and the nation steps back and reflects'."
Ex-FA boss Dyke also backed the decision from football chiefs, despite the issues postponing fixtures will pose with this winter's World Cup already complicating the schedule.
"I would say it's an incredibly difficult year for football with the World Cup coming up and you can see all the logistical issues," he told talkSPORT on Friday.
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"But this isn't about logistics, this is about respect.
"There needs to be a collective decision to say 'we are all going to step back'.
"This is something so special to mark 70 years of the Queen. I think they should step back and say 'this won't happen again in our lifetime'."