Cardiff City Are Latest Victims of Premier League Financial Woes

Executives at Cardiff City have revealed they were unable to pay players’ wages last month due to financial difficulties.

It is expected the players will be paid this week, but make no mistake, the dangers facing a company that fails to pay staff wages should not be underestimated.

Cardiff City escaped a winding-up petition at the High Court in June after settling a £1.9m tax bill. However, usually, when an employer is unable to pay staff they are trading while insolvent, and that’s a breach of contract with players.

Companies (including football clubs) have a duty to limit loss to creditors, and employees are creditors. According to the law, a bold employee who finds themselves in similar circumstances could petition to have their boss’s company wound up.

The employer would then be forced to pay what is owed or wind up the company. An employer should cease trading once insolvent. By continuing to trade and exploit services they are exposing employees to undue risk and even greater debt.

 

*image via http://www.visitcardiff.com/

DEBT ALERT: Abode Homes (Southborough) Ltd and Abode Homes (Horley) Ltd-Insolvent and Still Trading

27/11/2024

Our company alert this week is regarding two connected companies – Abode Homes (Southborough) Ltd and Abode Homes (Horley) Ltd. Both have a registered office…

Read More

DEBT ALERT:  Victoria Works NW Ltd (previous name DeTrafford Victoria Gardens Ltd) – Insolvent and Still Trading

27/11/2024

Our company alert this week is regarding DeTrafford Victoria Works NW Ltd. A building development company with a registered office in Castlefield, Manchester.  This company…

Read More
insolvent

DEBT ALERT:  CCL Mediacity Ltd (previously known as Missouri Avenue (Manchester) Limited– Insolvent and Still Trading

27/11/2024

Our company alert this week is regarding CCL Mediacity Ltd (previously known as Missouri Avenue(Manchester) Limited) with a registered office in Manchester. This company is…

Read More
castle trust

Castle Trust & Management Services – in Liquidation 

13/11/2024

The Confetti that was Security for Loan Notes Investigations have uncovered that Castle Trust and Management Services – in Liquidation (CTMS) – engaged in shady…

Read More