BusinessBusiness RecoveryClubs can end creditor status squabbles

Clubs can end creditor status squabbles

Football clubs that want to get rid of the notorious super creditor rule, which gives players first bite at the creditors' pie, have to 'just come and ask,' the Nationwide Football League has said.

Link: FDs give super creditor rule red card

The news comes in response to the Accountancy Age/PKF survey in which more than 52% of football finance directors in premiership and first division clubs agreed with insolvency practitioners saying football players should lose their ‘super creditor’ status.

A spokesman from the Nationwide League told Accountancy Age that despite the feeling among some League FDs that the super creditor rule should change, the policy remains in place.

But he added: ‘The policy is dictated by member clubs. If there is an opinion among clubs that it should change, they can come to us and change it.’

The rule is in place to protect ‘the integrity of the competition,’ and prevents clubs from employing and sacking players at will to serve their own purposes, he explained.

He also said the difference between business and football is that ‘in football, everybody should be on a level playing field because it is a competition.’

Many football clubs have been busy preparing their annual results and have not had time to attempt to change the rule but ‘any change will take time,’ according to one football finance director.

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