These proceedings concern the so called ‘football creditor rule’ operated by The Football League Limited (the FL). Its purpose and effect is to ensure that in the event of a member club becoming insolvent particular classes of creditors, such as other clubs in the FL, the club’s players, managers and other employees and the FL itself, are paid in full in priority to any other creditors. These preferred creditors are called ‘football creditors’ by the FL. It means, the FL acknowledges in its evidence, that football creditors will be paid in full before, for example, the St John Ambulance which provides first aid at many clubs’ grounds during matches.
Whether the provisions which together accord this priority are void and of no effect on the grounds that they are contrary to insolvency law.
Mr Justice David Richards
[2012] EWHC 1372 (Ch), [2012] Bus LR 1539, [2012] WLR(D) 163
Bailii, WLRD
England and Wales
Company, Insolvency
Updated: 06 December 2021; Ref: scu.459888
