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Government will not intervene in football creditors' row 12 October 2011

In a response to the Culture, Media and Sport Select Committee inquiry, the government said it recognised the strong views presented and has sympathy for those who described the current system as ‘morally indefensible’, but refused to step in to resolve the row.

It said: “we understand and acknowledge the strong desire of the football authorities to protect the integrity of their competitions.

“At the same time, it should not be beyond the skill and financial resources of the professional game to find a solution that protects the integrity of the competition, incentivises financial prudence and due diligence and offers equal protection to all unsecured creditors in any future insolvency event.”

Debt defence

The review went on to say that it disagreed with those who believe that debt, in itself, was not necessarily a bad thing for football clubs.

It added: “Debt per se is not always a bad thing, but it must be genuinely sustainable and assessed as a percentage of turnover.

"The government shares the concern expressed by the committee at the number of clubs on the edge of viability.”

The conclusion was that the Football Association should now review the expenditure in both the Football and Premier League by way of an official review, without any further legislation.



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