Pilgrims’ Progress Unhindered by Revenue

Posted: 16th March 2011

The ‘football creditor’ rule, which applies to all clubs in senior professional leagues, has the effect that football creditors (players, other clubs etc) are paid out in full on an insolvency before any ‘non-football’ creditors are paid.
The rule has long been opposed by HMRC, which is normally the largest creditor in a football club insolvency.
HMRC sought the court decision because it seems likely that disaster club Plymouth Argyle may be sold by itsfootball administrators, leaving a £4 million debt to HMRC.
The court was unwilling to ‘fast-track’ HMRC’s case, because the Pilgrims already owe more than £4 million to secured creditors, which means unsecured creditors, such as HMRC, are unlikely to get anything at all.