John Verrill, president of R3, the association for business recovery professionals, said he would encourage members to take the Football League to court, saying he would be prepared to take a case if asked. He said: ‘It’s time the rule was shaken up. There is no justification for less skilled football players being paid £40,000 a week over turnstile operators.’
The rule gives football creditors – players, managers and other clubs – first refusal over all other creditors when a club goes into administration, according to Football League rules.
Experts have long complained about the rule because it makes restructuring ailing clubs extremely problematic. ‘The Football League has taken it upon themselves to rewrite insolvency law and it’s time it was challenged. Taking the league to court would turn the rule on its head,’ said Verrill. He added that the rule went against the ‘equal pain sharing’ provisions in insolvency law which demand that the spoils of an administration be shared evenly among creditors, a fundamental principle of insolvency law.
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
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