League rethinks supercreditors
The Nationawide League has unexpectedly signalled that it could overhaul the controversial super creditor rule offering insolvency experts a lifeline in their attempts to save struggling football clubs.
Link: Debate: the supercreditor rule
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.