Premier League Boss Tries and Fails to Defend Football Insolvency Rules

Premier League head Richard Scudamore has attempted to defend the football creditors’ rule, following a lawsuit filed by Her Majesty’s Revenue and Customs (HMRC).

HMRC, quite correctly, claim the rule on paying soccer creditors first is ‘unfair, unlawful and unacceptable.’

However Scudamore insists the directive is necessary to prevent one team’s financial problems from destabilizing the entire league.

He said recently: ‘We will defend it on the basis of the chaos that will ensue if we don’t have it. We are a closed system: we trade on a closed basis between each other.

‘The idea you would put an administrative blockage of a due diligence; it’s a place we just wouldn’t want to go.’

Scudamore’s comments highlight just how manifestly unjust the football creditors’ rule is.

The English Premier League generates annual revenue of around £2 billion and is the soccer industry’s most lucrative domestic competition.

But if the football industry is to exist as a commercial enterprise, it must be subject to the same rules and regulations as other industries.

Insolvency legislation is created to govern enterprise; in regards to bankruptcy, there should be no special favours given to football clubs.

Why should they receive special treatment in the event of insolvency? They’re just another commercial enterprise within the UK economy. Sudamore is simply attempting to defend the indefensible.

It is grossly unfair to have an insolvency regime for the football enterprise, which is more favourable than the insolvency legislation as we know it.

Moreover, nowhere in either the Enterprise Act 2002 or the Insolvency Act 1986 does it state that football clubs should receive special protection. It’s laughable this issue has found its way so far to the high court.

There is no provision, clause, sub-paragraph or sentence to be found anywhere in either of these acts that gives football creditors preferential status; it’s simply a figment of their own imagination.


* Image courtesy of 

Commercial Debt Collection: Challenges and Best Practices


Commercial debt collection is the process through which outstanding debts owed by commercial entities are recovered, typically stemming from goods delivered or services rendered on…

Read More

Gibraltar Financial Services Commission: A Lesson in Financial Regulation


The recent collapse of High Street Group and its security trustee, Castle Trust Management and Services, prompts a closer examination of regulatory practices. Along with…

Read More
de trafford

De Trafford Third Party Recovery: An Update


The recent financial collapse of multiple DeTrafford property development companies hassignificantly impacted purchasers. As they navigate the consequences, a glimmer of hope arises asthe wheels…

Read More
Northumberland Living

Northumberland Living Developments: Allegations and Challenges


Northumberland Living, In West Chevington Farm, Druridge Bay, is a development poised for completion. Only to be stalled by an apparent unforeseen historical conveyancing issue.…

Read More