Football first rule queried

The rule that gives football creditors such as players and other clubs priority in any administration has been challenged.   Some analysts think they are not consistent with the law.  Others say that in any event the rule should be abolished.  Football economist Stefan Szymanski took this view and not just because it favours wealthy footballers over the likes of the St.John Ambulance.  He told the Financial Times, ‘It undermines the incentive of the league to put in place some self-regulatory mechanism to control the finances of the club.’

The rule that gives football creditors such as players and other clubs priority in any administration has been challenged.   Some analysts think they are not consistent with the law.  Others say that in any event the rule should be abolished.  Football economist Stefan Szymanski took this view and not just because it favours wealthy footballers over the likes of the St.John Ambulance.  He told the Financial Times, ‘It undermines the incentive of the league to put in place some self-regulatory mechanism to control the finances of the club.’


HM Revenue and Customs is owed about £15m by Portsmouth, but can expect very little from any disposal of assets.  However, by pushing for a winding-up order and thus forcing Portsmouth’s hand, it has prevented the club running up even bigger liabilities.


Portsmouth adminjstrator Andrew Andronikou has suggested that the Premier League may not go ahead with the standard nine point deduction.   However, this would send out the wrong signal to other clubs.  It is also difficult to see how it would help Portsmouth who would be ill placed to face another season in the Premiership and would be much better re-grouping in the Championship.  What they do need is to avoid another points deduction there next season for not having agreed a CVA by then, but the administrator has said that he hopes to settle matters in two to three months.


He has also suggested that the Premiership might advance some of next season’s £16m parachute money and he may be on firmer ground with that request.