BusinessBusiness RecoveryDecision on football insolvency rule delayed

Decision on football insolvency rule delayed

The insolvency policy of the Nationwide Football League will be reviewed over the summer after the League voted to postpone until September a decision to dock points from cash-strapped clubs that go into administration.

Link: Oldham faces wind-up

The decision to defer, which took place last week, will leave Wimbledon FC and other clubs in uncertainty. Business recovery experts fear the existing policy could force clubs to try to continue operating even while they are insolvent, which is illegal.

A spokesman for the Football League said that the verdict had been delayed because club chairmen wanted to look at the insolvency policy as a whole before voting, instead of looking at just one aspect.

‘There is an insolvency working party looking at the insolvency policy as a whole. We will be calling an egm at the end of the summer when they have finished looking at it,’ he said. But insolvency experts continued to speak out against the proposed rules.

A representative of York City FC said the League had clubs and administrators ‘over a barrel’.

‘Nobody is prepared to challenge the League through legal processes,’ said the spokesman.

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