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Next Game: Oxford City At Edgar Street On Tuesday 5th November At 7.45pm

Wednesday, September 17, 2008

Conference rules help keep clubs solvent

The Guardians's David Conn has written an article praising the Conference for their lead in trying to stop clubs living beyond their means.

The article is timely given the revelation that Mike Ashby, who reportedly made £929m from his Sports Direct business last year, says Newcastle needs someone with even more money to buy it and that Robinho could be paid around £160,000 per week.

In the Conference patience wore thin with a succession of clubs becoming insolvent, and rules have been introduced which make it England's toughest league on overspending. Two years ago the Conference scrapped the "football creditors" rule. Now, even if a club has agreed a CVA, it must pay all debts owed to any creditor in full, by the second Saturday of May. If not, a club is expelled - or, to use the more polite term favoured by the Conference's chief executive, Dennis Strudwick, "not accepted for registration" the following season.

That has not been an idle threat. Without much attention paid by a football world fixated on the top, several long-established clubs have gone bust or fallen out of the Conference. Scarborough, after four years of insolvency, finally went into liquidation and out of existence in June last year. Boston United, who finished last season in Conference North, had not paid their creditors in full by May this year, were expelled and are now in the UniBond Northern Premier League. Halifax Town also failed to pay their creditors in full; the Conference refused to accept them for this season, and the old club, formed in 1911, ceased to exist. A new club, FC Halifax Town, formed by a supporters' trust, is playing now in the UniBond League Division One North.

The Conference has introduced a new system this season for the 68 clubs in its Premier, North and South divisions, to help them keep on top of their debts. In a system developed with the FA, the clubs will report to the Conference every quarter on what they owe HMRC, and are required to show after two months that they have paid their tax in full, or have a written agreement scheduling the payments. Again, the system has teeth - if a club fails to pay its tax, the Conference will impose a transfer embargo.

"This is about helping clubs live within their means," says Clapham. "We believe debts should be paid in full, to everybody, not just footballers."

The most damaging phenomenon, which has put most clubs in trouble, Clapham points out, has been when new owners arrive at clubs with grand plans, spend big in an attempt to buy success, then pull the plug or run out of money. "The sugar daddy model doesn't work," says Clapham. "It's unsustainable."

Strange that it has been a recipe for mayhem in the Conference, yet in the Premier League it is now the way ahead.