Don’t get fouled by the football creditor rule: an ugly side to the beautiful game
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Don’t get fouled by the football creditor rule: an ugly side to the beautiful game
In the recent case of HMRC v The Football League Ltd [2012] EWHC 1372 (Ch), the so-called “Football Creditor Rule” which applies to the English Premier League, Championship and Leagues One and Two, survived a hefty challenge from HM Revenue and Customs, who had claimed that it breached established insolvency law. Now that football insolvencies have become commonplace, the rule poses an increased risk of financial exposure for businesses who trade, directly or indirectly, with football clubs. In our detailed risk guide we examine the Rule and its implications for business and suggest action which can be taken to insulate businesses from its most harmful effects until such time as expected legislation can take effect. For more information, please visit the ‘What’s New‘ section of the Paris Smith Business Club website.