30 Jul 2010English Premier League defends insolvency regulations

Football Finance News | Football Leagues/ Association and Governance

A representative from the English Premier League has sought to defend regulations protecting football clubs from insolvency at a meeting of a parliamentary group, according to a report.

Accountancy Age revealed that communications and public policy director Bill Bush told the Business Finance and Accountancy committee that smaller teams will suffer disproportionately if the preferential payments rule is scrapped.

He added that HM Revenue and Customs (HMRC) - which is currently taking action to oppose a proposed company voluntary arrangement at Portsmouth - has already sought to remove the regulation without success.

The website reported that the so-called football creditors' rule came under intense criticism from some attendees, with one describing it as "disgraceful" and another adamant that firms in other areas would not be treated so leniently.

Speaking to the Daily Telegraph last month, a source close to HMRC described provisions for footballing creditors as "fundamentally unfair" and pledged the tax office would redouble its efforts to overturn them.

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Written by Mark Thompson 

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