ITV Digital claims new victim
The collapse of ITV Digital claimed another victim last week as Barnsley FC was forced to put up 'for sale' signs following a cashflow crisis.
Link: Grant Thornton to take on ITV Digital liquidation
Administrators from RSM Robson Rhodes, Charles Escott and Matthew Dunham, were appointed last week at the second division club, which has liabilities of £12m, amid warnings that there is a ‘vast number’ of clubs in a similar position.
Dunham hit out at the controversial ‘super creditor’ rule, which puts players and club staff ahead of other creditors, and makes the administration more difficult.
‘It would be easier, but it’s a requirement of the Football League,’ he said. ‘On-going liabilities that transfer to a new company always makes restructuring difficult,’ he added.
But he said that the administrators were looking at ‘something inventive’ to minimise the impact of the super creditor rule.
Barnsley suffered a double whammy when the ITV Digital broadcast rights money disappeared just after it was relegated from the First Division.
According to Dunham, the situation has worsened as a result of ‘a very thin market for players’ – clubs in the past had been able to sell players to ease cashflow problems.
Dunham claimed there were other clubs that faced similar difficulties.
He said: ‘One has concerns over how the less well-run clubs are faring.’
