by Z175 »
02 Aug 2011 14:14
Svlad Cjelli Scrap Football Creditor's Rule
Personally I think this one small (legally necessary) step would be a game changer.
Its currently risk free gambling for Cardiff, Pompey, Leicester, Palace. Rack up debt and maintain a better team than Reading can keep on the field and either get a promotion windfall or merely go into administration, don't pay your VAT or PAYE obligations on players salaries and keep your place in the championship.
If other clubs and players didn't get paid before HMRC then no way would this model be sustainable. We would never have sold Matt Mills as we would have no guarantee of getting the money. All the players would have to demand less wages as no one could offer more.
Without the football creditors rule clubs that go into administration would be thrown out of the league for failing to pay other clubs, players would be released on free transfers as they would not be able to be paid and HMRC would liquidate businesses that didn't pay their tax.
Leicester City would not have been promoted in 2003 while in administration. In fact they would have lost all their players and dropped into the lower reaches. Perhaps the FA should allow fans' clubs to replace liquidated businesses. If a new Portsmouth had competed in last years championship without the likes of Nugent etc and finished below Sheffield Utd and saved that debt-ridden club from relegation, it would be fairer than in-administration-portsmouth keeping their expensive team while sheff utd are suffer the fair financial consequences of relegation.