With many football clubs already struggling to survive, a survey by credit reporting company checkSURE revealed that First Division clubs were 13 times more likely to suffer a ‘potentially terminal financial crisis’ than those in the Premiership.
While First Division clubs have a one in ten chance of collapse, Premiership clubs have a relatively tiny one in a hundred chance of collapse, the same risk facing FTSE 100 companies.
These figures were arrived at using commercial credit scores that predict the likelihood of severe financial stress occurring in the following year including liquidation, receivership, wind up or administration.
WorldCom, the world’s biggest ever bankruptcy, had a 40% chance of collapse, using the same calculations.
Tom Cannon, non-executive chairman at checkSURE said: ‘Our research suggests that football clubs’ finances are, if anything, worse than previously feared.’
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
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