Overground Online
Overground Online

Lord Sugar Lifts the Lid on Crazy World of Football Finance

On Sunday, celebrity tycoon and former Tottenham Hotspur chairman Lord Sugar presented an exhilarating documentary exploring the reasons why collectively England’s Premier League football clubs owe more than £3 billion, writes insolvency and business rescue expert Peter Murray.

His findings support what we’ve been saying for months on our blog: the legislation surrounding football bankruptcy must be changed if the game is to survive.

Recently, Premier League head Richard Scudamore attempted to defend the football creditors’ rule, following a lawsuit filed by Her Majesty’s Revenue and Customs (HMRC).

The taxman, quite correctly, says the rule on paying soccer creditors first is ‘unfair, unlawful and unacceptable.’

However Scudamore insists the directive is necessary to prevent one team’s financial problems from destabilizing the entire league.

He said: ‘We will defend it on the basis of the chaos that will ensue if we don’t have it. We are a closed system: we trade on a closed basis between each other.

‘The idea you would put an administrative blockage of a due diligence; it’s a place we just wouldn’t want to go.’

His comments highlight just how manifestly unjust the football creditors’ rule is.

Nowhere in either the Enterprise Act 2002 or the Insolvency Act 1986 does it state that football clubs should receive special protection, so it’s laughable this issue has found its way so far to the high court.

Apparently, Sir Alan agrees. Click here and watch him explain why on Lord Sugar Tackles Football, until Wednesday 18th May.

| | | More
Tags BBC, football, Insolvency, Peter Murray, Insolvency and Law, Alan Sugar, Lord Sugar, Lord Sugar Tackles Football, Richard Scudamore, premier league
Related Articles Young, British and Sober 'Controversial' Comedy Citizen Khan Returns to BBC Video: Ex-Londoner's Charity Bid for Teen Footballers in Ghana Singers Need More Than a Voice to Be a Star David Lammy Debates the Causes of London Riots Masters of the Universe Still Bill: The Bill Withers Story Pepe Reina's Advert Is Offensive, But We've Seen Worse on British TV Overground Online in the Guardian Nottingham Forest Ladies Secure Back to Back Wins 1971 Flashback: Happy Earthday Andy Cole Watch: Real Sports Weekly Fern Whelan Makes International Football Debut Watch: Real Sports Weekly Radio Show Preview: Premier League 2011-2012 Everton Outside Favourites for FAWSL Championship 1991 Flashback: The Real McCoy Rio Ferdinand Stalker Does a Runner Wanted: Unruly Teens for The World's Strictest Parents Insolvency and Law Premier League Football Club Linked to Middle East Conflict English Football vs HM Revenue and Customs UK Lawyer Issues Court Summons via Facebook Fulham FC to Honour Michael Jackson with Statue Footballer Birgit Prinz Inspires New Barbie Doll Who Do You Think You Are? Live 2011 VAT Increase: HMRC Crackdown on Tax Dodgers Lloyds TSB Vs Businessman Keith Elliot Junglist Massive Competition: Win A Copy of All Crews Football is a Religion, But Players Aren't Gods Marta on Target for FIFA World Player of the Year 2010 Think It's Cold Here? Watch This Mario Balotelli is Future of Italian Football Says Mancini England 2018 Launch Facebook Campaign for World Cup Bid Silvio Berlusconi: Media Pimp or the Smartest Leader in Europe? Hurricane Tomas Kills Seven in Haiti Eastenders Actress Belinda Owusu to Collect GUBA Rising Star Award Italian Stallion Balotelli Battling Fitness for Juventus Clash Ting Tings a Hit with African Ballers Anton Ferdinand Embarrassed By Freak Goal 50 Cent's Got Love for Wayne Rooney, But Beef with Gays Looming Recession is a Problem for UK Businesses Usain 'Lightning' Bolt to Give Up Athletics for Football Tony Blair on Britain's Future, the Economy and War Vernon Kay and Gappy Ranks Play Family Fortunes World Cup and Premier League Footballer John Paintsil to Launch GUBA Awards Prince Harry Unhappy with Ms Dynamite Anti-War Rant BBC Weatherman's Middle Finger Blunder Offends TV Viewers Cristiano Ronaldo's Baby-Mother is British Teen Says Ex Girlfriend Manchester City's Mario Balotelli is Man to Watch Crack Head Phil Gets a Slap from Peggy in Eastenders Channel 4 Star Elliott Tittensor Talks Sex, Man United and Reggae Watch Ciara Do the Migraine Skank in London Stop The Press: What Does the Future Hold for Black Newspapers? Dizzee Rascal for MP Says Jeremy Paxman on Newsnight Royal Pardon for Radio 1 DJ Grooverider Released From Dubai Jail
COMMENTS (23) Add your comment
There are no comments for this post yet. Be the first!

About Us - Contact Us