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Next Game: Scarborough In The League At Edgar Street On Tuesday 19th November At 7.45pm

Friday, May 25, 2012

High Court Dismisses Football Creditors Bid

The Football League have issued a press release saying that a judge has dismissed the taxman's claim to have the Football Creditors rule declared unlawful, but HMRC have the right to appeal the judgement.

The statement reads, in part:

At a hearing in the High Court today, Mr. Justice David Richards dismissed the latest attempt by HM Revenue and Customs (HMRC) to have the so-called 'Football Creditors' rule declared unlawful.

This decision follows a five-day trial in November and December 2011. HMRC have been ordered to pay the costs incurred by The Football League in defending these proceedings.

HMRC have been granted permission to appeal to the Court of Appeal.
A Football League spokesman said: "The judgment confirms that The Football League's rules and insolvency policy do not breach the principles of existing insolvency law.

"We recognise that some regard the application of these rules as being imperfect. However, they remain an essential part of football's approach to handling insolvent clubs within the wider context of competitive league football.

"The judgment recognises that a league has the right to insist upon insolvent clubs meeting their financial obligations to the rest of the game as a condition of continued membership."

The full statement can be seen here.