Football creditor rule still under attack

...but hopefully not penalties.

I'd like to think that there is no connection between this situation and football stars being paid £100K a week.  But I'm not at all sure.

I think this one will be solved by legislation not case law.....  Trouble is that if during transfers fees are not paid by insolvent clubs the whole league suffers.  It is in effect a closed market.  I think the players should perhaps take a hit occasionaly

I also think footballers should take a hit (or at least for there to be the potential for them to lose out). It may force them to consider whether to join those clubs offering wages beyond their means.

The worst consequence of this rule has been for small creditors, local small businesses, ST Johns ambulance and the rest. For instance, someone who offered B&B accommodation for young players got burned whrn my local club went into administration.

Should not allow these amounts to build up and take action immediately as they do with many small companies.

If clubs find it difficult to sign players because there is a chance they will lose out financially, it may force these clubs to live within their means.

That includes in their dealings with the wider community, creditors etc, where they should demonstrate being 'socially responsible'.

Looks like everyone gets financially shafted by their involvement with football clubs not just the fans.

I believe this rule is ludicrous.  But if you don't give HMRC at least equal rights as football creditors then quite simply they will have to close down more clubs.    

It is disgusting that £39.5m of £40.26m tax debts were unpaid.  I am a football supporter and have seen my club in administration and also struggle with unscrupulous owners.  HMRC must now view football clubs as high risk areas and if there is a single default on payment seek full recovery through winding up procedures if necessary. In no way can they allow arrears to build up as they have done before.  HMRC is the largest creditor in most of these cases.  If they can't quantify the liabilities because returns haven't been prepared then they need to take action early.  I think it is amazing Rangers FC didn't pay any PAYE/NI in the time their previous owner was in place.  Est. £9m debt wasn't it? 

Who loses out when the likes of Leeds United or Portsmouth go into administration?  The players? the other clubs? no, the people who lose out are unsecured creditors like HMRC and like the sub-contractors who water the pitch, do the signs, provide catering for corporate hospitality, St John's ambulance etc.

The Football Conference is from 2012/13 joined by the Football League in using a wages cap by which the total wages budget can not exceed 65% of an agreed projected turnover based on the previous year's figures.

In addition the Conference have a quarterly reporting system by which its clubs have to submit to the secreatariat an accurate  list of all creditors, failing which they suffer a points deduction. They are also not allowed to owe more than three months PAYE & NI , 

English football contributed almost £1.2bn to the Exchequer in the 2010/11 season, a not insigificant sum and procedures are in place to place penalties on those clubs who do not keep their payments & records up to date with HMRC.

Also the introduction of Financial Fair Play, both at a national level by UEFA and on an internal level by the Premier League and Football League, should see more onus placed on managing costs within football.

It's not all 'one way' traffic!

Talk of living beyond your means, taking a hit, too big to fail, creditors losing out on a default ...

"English football contributed almost £1.2bn to the Exchequer in the 2010/11 season" - doesn't most of that come from Sky subscribers ?