In the United Kingdom, football clubs sometimes choose to enter administration (sanction) when they are unable to pay off outstanding debts. Under the Insolvency Act 1986, a business will face a winding-up order bringing them to court and if it is shown that a business cannot pay debts as they fall due or cannot repay outstanding debts then the company will be classified as insolvent.[1] Administration puts accountants "in charge of pretty much everything apart from coaching the players and picking the team".[2] For a football club in administration, the "football creditors rule" requires football-related debts such as wages owed to players and staff, and transfer fees owed to other clubs to be paid first.[3]
- ^ "Insolvency Act 1986 (c. 45) – Part IV Winding Up of Companies Registered under the Companies Acts – Chapter VI Winding Up by the Court – Grounds and effect of winding-up petition". www.legislation.gov.uk. Office of Public Sector Information. Retrieved 13 October 2013.
- ^ Cite error: The named reference
Administrationwas invoked but never defined (see the help page). - ^ Grant, Paul (23 November 2008). "Football clubs owe tax millions". news.bbc.co.uk. BBC News. Retrieved 26 February 2010.