Insolvency in Football

The problem with this is that this is done over the priorities of other unsecured creditors such as HM Revenue and Customs which will be owed sums through the non-payment of tax. HM Revenue and Customs intend to take the Premier League to court claiming that it is illegal for them to put in place the football super creditors rule.

HM Revenue and Customs claim that this rule is illegal as there is nothing in the Insolvency Act which states that it is legal to impose conditions in this manner. The case has not as yet come before court with HM Revenue and Customs simply stating their intention to take the Premier League to court.

The Premier League has countered stating that they plan to robustly defend their position as they claim that they have not contravened the Act. In the case from the Inland Revenue failed in a legal bid to overturn a voluntary arrangement made by a football club on the grounds that it infringed the Insolvency Act as football creditors received payment in full whereas the Inland Revenue, in the position of a preferred creditor did not.

In this case the High Court ruled that the power of the League to secure full payment for the creditors of its choice was legal. Following this decision it may therefore be difficult for HM Revenue and Customs to prove that the football super creditors rule is illegal under the Insolvency Act Is the Football super creditors rule legal under the Insolvency Act? Charlton 3 Grimsby 3". Archived from the original on 14 April Retrieved 21 October Archived from the original on 26 July Reborn Newport happy to be thrown in at the deep end ahead of Football League return".

Archived from the original on 27 March Archived from the original on 18 July Retrieved 25 November Queens Park Rangers FC. Archived from the original on 20 March Retrieved 27 February Retrieved 28 February Retrieved 13 July Archived from the original on 12 June Retrieved 6 January Retrieved 15 April Archived from the original on 29 February Archived from the original on 26 August Archived from the original on 28 March Archived from the original on 8 March Archived from the original on 23 June Archived from the original on 4 March Archived from the original on 13 March Archived from the original on 12 March Retrieved 24 October Archived from the original on 31 July Retrieved 25 May Retrieved 2 March Retrieved 31 August Archived from the original on 15 March Archived from the original on 23 August Retrieved 20 August Archived from the original on 26 October Archived from the original on 5 March Retrieved 4 March Retrieved 31 October Retrieved 7 July Retrieved 8 July Retrieved 3 January Retrieved 17 February Retrieved 20 April Administrator Bob faces a sense of deja-vu".

Retrieved 8 March These changes could have significant implications for clubs, funders, investors and potential rescuers.

The approach of The Football League to insolvency has drawn a lot of attention in the press over recent years. The Football League sets various criteria for the club to be readmitted to the League.

Navigation menu

Football creditors include the League itself and associated leagues, other clubs and full-time employees including players. The rule has attracted a lot of controversy. The biggest loser from this rule is often HMRC. Since they have had no preferential status on company insolvency and are treated as an ordinary unsecured creditor.

1. Football Super Creditors Rule and the Insolvency Act - www.newyorkethnicfood.com.
2. There was a problem providing the content you requested.
3. Growing anew from your business challenges?
4. Cultural Policy: Management, Value and Modernity in the Creative Industries?

The Football Creditor Rule means that they, alongside other unsecured creditors, can remain unpaid while football creditors are paid in full. As a result HMRC have launched a series of unsuccessful legal challenges to the legality of the Football Creditor Rule culminating in a legal decision 5 which finally decided the matter in favour of the Football League. The seriousness with which the League views insolvency is underlined by increasing the points deduction which a club suffering an insolvency event incurs — up to 12 points from This threatens a real sanction as the points deduction can lead to relegation and a significant cut in revenues.

The Football Creditors Rule would be preserved. However, an additional requirement is imposed that other creditors must receive at least 25 pence in the pound or 35 pence in the pound if paid over three years.

A failure to meet this obligation could result in a further point deduction for the club. Clubs were previously required to undergo a company voluntary arrangement CVA through which football creditors were paid in full and arrangements for other creditors settled.