0370 270 6000

already registered?

Please sign in with your existing account details.

need to register?

Register to access exclusive content, sign up to receive our updates and personalise your experience on brownejacobson.com.

Privacy statement - Terms and conditions

football creditors rule retained, for now

2 July 2012

The High Court in Revenue and Customs Comrs v Football League Ltd, has confirmed the validity rule that a club in the Football League or Premier League that is entering insolvency proceedings must pay any football debts in full before any other creditors.

The rule (which is very unpopular with HMRC) states all football creditors including players and managers, other football clubs etc must be paid first when clubs go into administration, leaving little for other unsecured creditors.

Whilst a parliamentary report into the rule has stated that it is “morally unjustifiable” it is difficult to predict whether the rule will be eventually overturned.

The implications of scrapping the rule should be carefully thought through and legislators should pay close attention to the situation at Rangers (Scotland does not have a creditors rule). A balance should be sought where the rights of creditors are protected whilst ensuring that the most prized assets of the club are ring-fenced to enable the club’s continued existence.

related opinions

Money laundering – a new focus?

It is important to recognise that organisations and individuals do not have to intend to launder money or even to act dishonestly in order to commit money laundering offences.

View blog

Employer's beware: Government announces changes to IR35

The Chancellor, Phillip Hammond, has just delivered his latest budget and with it, a significant change to the way liability for IR35 breaches will be dealt with for private sector companies from April 2020.

View blog

Risk warning: independent contractors

Various Claimants v Barclays Bank is a claim in vicarious liability arising from sexual assaults perpetrated by an independent doctor conducting health examinations on employees and prospective employees of Barclays Bank, on the bank’s behalf.

View blog

Vicarious liability and independent contractors: the law continues to evolve

The Court of Appeal’s judgment in the case of Barclays Bank plc and Various Claimants has been handed down.

View blog

mailing list sign up



Select which mailings you would like to receive from us.

Sign up