BusinessPeople In BusinessFootball facing financial crisis, warn insolvency experts

Football facing financial crisis, warn insolvency experts

Two leading insolvency experts have called for changes to the 'super-creditor' rule for certain clubs to ensure they can restructure their debt burdens and survive the current financial crisis.

Writing in Accountancy Age Lee Manning , a partner at Kroll Buchler Phillips, said that while the super creditor rule, which guarantees the contracts of special ‘football creditors’ such as players, managers, and other clubs above traditional creditors was understandable, the collapse of ITV Digital had created a unique problem for football clubs.

Manning proposed a temporary suspension of the rule for ’20 or 30 clubs’ that needed help to restructure their debt burdens.

However, he said such a decision lay at the feet of the Football League, the PFA and the clubs themselves.

This view was shared by Mike Hore, corporate recovery head at RSM Robson Rhodes, who said a change in the rule was needed to facilitate more ‘radical restructuring’.

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