The Football Association is planning to look again at football clubs becoming
insolvent shortly before the end of the season to minimise points penalties.
Two clubs went bust when it loooked like they were going down last week –
Leeds and Boston United – leading to suggestions they had cynically cheated
creditors in order to pick up a ten point penalty this season when it no longer
mattered, rather than next.
An FA spokesman told Accountancy Age this week: ‘[The issue] will very likely
be looked at again in the close season in light of the Leeds and Boston cases.’
The issue has already been the subject of anguished discussion, he added:
‘This issue has been discussed at some length by The FA’s Financial Advisory
Committee (which is comprised of representatives of The FA and various league
representatives) and the general feeling was that there was no obvious
alternative that would solve the problem.’
Boston completed their CVA just minutes before the end of their last match,
which they were losing 3:1.
Leeds looked set to go down and went into administration before their final
In Boston’s case the CVA will see their non-football creditors receive a
fraction of their investment if approved.
In an earlier instance HM
Revenue & Customs, one of the biggest losers when a club signs a CVA,
unsuccessfully challenged Exeter City as a breach of law.
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children