Football clubs collapse

Players and coaching staff at Rotherham United were asked to take wage
deferrals by administrators from XL Business Solutions.

‘Unfortunately the redundancies and wage deferrals were a necessity,’ said
administrator Jeremy Bleazard.

Gretna has also entered administration and received emergency funding from
the Scottish Premier League to keep the company alive. Luton Town and
Bournemouth are attempting to clinch deals with buyers to secure their
medium-term futures.

But Gerald Krasner, administrator at Bournemouth, warned the club’s attempt
to enter a CVA could be blocked by the taxman, as football creditors would be
treated as priority and a lack of a CVA could see the club face a points
deduction much like Leeds United did at the beginning of the season.

Grant Thornton’s Joe McLean says the financial management bar has been raised
in football clubs over the last five years.

‘The Football League has tried to encourage salary capping with some success,
but it hasn’t been adopted widely,’ said McLean.

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