Insolvency practitioners believe that the rule is the single biggest obstacle to rebuilding finances in the Nationwide League because it compels clubs to pay off the contracts of football creditors – players, managers and other clubs – whatever the fiscal position of the club.
The League this week said that the rule could be examined in the future a statement representing a significant softening of its earlier position that supercreditors were unassailable.
No change is expected until the league appoints a new chairman and chief executive following the recent resignations of David Burns and Keith Harris which left ICAEW qualified finance directore Tad Detko at the helm.
Clearly pointing to a change of heart a League spokesman told Accountancy Age: ‘We are not thinking of changing football creditor rules at the moment but this may change over time.’
A recent report commissioned by ailing clubs and compiled by KPMG said the League should overhaul the way it is run.
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