Sunday, December 18, 2011

Inland Revenue risks 'own goal' with challenge to insolvency rule


. The prosecutor says the changes can lead to more settlements

. The judge compares private league clubs

The IRS is trying to score a "goal" against all left-of-pocket by the financial collapse of a football club, a court heard Monday at the issue of HM Revenue & Customs against the insolvency of the policy of Football League moved to its fourth day at the Supreme Court.

the so-called football has always been controversial creditor, that debts not only for the club competition, but also millionaires players are paid in full if the collapse of a Football League or Premier League. In contrast, small creditors of the local community, including schools and often charities such as St. John Ambulance, are paid a fraction of their hand when the club is clear the administration through a voluntary agreement Enterprise (CVA).

Professor Gabriel Moss QC

, which is involved in the case on behalf of the Premier League, argued that the challenge is counterproductive. "Revenues are scoring a goal against his camp because they want to create a situation in which the clubs are forced into liquidation - which disrupts the league - instead of allowing the club to be rescued by a new buyer," Moss said

leagues argue that it would be a duty to protect its member clubs solvent if those who had passed beyond his means were by default in one part of the debts of his transfer. The only alternative to current policy on insolvency, such as leagues, would force the payers of their powers and again at the foot of the football pyramid, a step that could lead to the inevitable liquidation football clubs history.
"A stroke can be arranged whereby football creditors are paid in full, but others have to agree on the purchase by the mechanism of stroke. [All other creditors] receive a dividend that is a much better result than in a liquidation. "

Although the judge, Richards, adopted without comment by the logic of Moss, who did not agree with the reference to the league as "regulators", preferring to describe the relationship as related to private clubs. "Not at the moment to see how you can control the function," said Richards. "What is this, that to continue in the Football League the club must meet certain conditions.

"No need to talk about regulatory functions. No one can remain a member of a club under the rules of the club, which can be simply to protect the interests of club members.'s Debts Club partners must be paid the debts may include gambling debts:. if you fail to pay his gambling debts that can not remain a member of the club if the regulation is "

court findings on this issue aside until the case could have important consequences, as the regulatory function of the organs of English football is a key area for consideration by the Government of the football inquiry Parliament should decide on next year.
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