Super creditor rule to play on
The Nationwide Football League has said it will maintain the 'super creditor' rule for football clubs, increasing the difficulties insolvency practitioners face in trying to save ailing teams.
A Football League spokesman told Accountancy Age the board had decided to continue with the super creditor rule giving football creditors, such as players and managers, first pick of the pie in the administration of a club.
The spokesman added the clubs could also raise more cash by selling the broadcasting rights to the football matches, which they still owned.
But insolvency experts believe this could mean the end for many of the troubled clubs. Philip Long, head of business recovery at PKF said: ‘The problem going forward is that people won’t be able to restructure business.’
He added the future of many clubs rests on the resolution of the ITV Digital problem, as the rights will probably be sold to Sky at a discount price.
Matt Dunham, who is expecting to take Bury FC out of administration on Friday, said the fact the League is not relaxing its super creditor rule makes it harder for clubs. ‘It’s an additional liability that the clubs have to carry.’
But he added: ‘Ultimately, it will force players’ wages down because the clubs will have to negotiate with the players.’
The High Court released QPR from administration this week.
