In the United Kingdom, football clubs sometimes choose to enter administration when they are unable to pay off outstanding debts. Under the Insolvency Act 1986, a business will face a winding-up order bringing them to court and if it is shown that a business cannot pay debts as they fall due or cannot repay outstanding debts then the company will be classified as insolvent.Administration puts accountants "in charge of pretty much everything apart from coaching the players and picking the team". For a football club in administration, the "football creditors rule" requires football-related debts such as wages owed to players and staff, and transfer fees owed to other clubs to be paid first.
Association football, more commonly known as football or soccer, is a team sport played with a spherical ball between two teams of eleven players. It is played by 250 million players in over 200 countries and dependencies, making it the world's most popular sport. The game is played on a rectangular field called a pitch with a goal at each end. The object of the game is to score by moving the ball beyond the goal line into the opposing goal.
As a legal concept, administration is a procedure under the insolvency laws of a number of common law jurisdictions, similar to bankruptcy in the United States. It functions as a rescue mechanism for insolvent entities and allows them to carry on running their business. The process – in the United Kingdom colloquially called "under administration" – is an alternative to liquidation, or may be a precursor to it. Administration is commenced by an administration order. A company in administrative receivership is operated by an administrator on behalf of its creditors. The administrator may recapitalize the business, sell the business to new owners, or demerge it into elements that can be sold and close the remainder. Most countries distinguish between voluntary (board-decided) and involuntary (court-decided) receivership. In voluntary administrative receivership, the administrator is appointed by the company directors. In involuntary administrative receivership, the administrator is appointed by a judicial court. The legal terms for these processes vary from country to country, and the processes may overlap.
Debt is when something, usually money, is owed by one party, the borrower or debtor, to a second party, the lender or creditor. Debt is a deferred payment, or series of payments, that is owed in the future, which is what differentiates it from an immediate purchase. The debt may be owed by sovereign state or country, local government, company, or an individual. Commercial debt is generally subject to contractual terms regarding the amount and timing of repayments of principal and interest. Loans, bonds, notes, and mortgages are all types of debt. The term can also be used metaphorically to cover moral obligations and other interactions not based on economic value. For example, in Western cultures, a person who has been helped by a second person is sometimes said to owe a "debt of gratitude" to the second person.
In 2000, ITV Digital bought the broadcasting rights to Football League and League Cup matches in a three-year, £315m deal. million which it said it "cannot afford to pay". Because of this, many Football League clubs had financial problems and entered administration.In March 2002, the company went bankrupt owing the League £180
ITV Digital was a British digital terrestrial television broadcaster which launched a pay-TV service on the world's first digital terrestrial television network. Its main shareholders were Carlton Communications plc and Granada plc, owners of two franchises of the ITV network. Starting as ONdigital in 1998, the service was re-branded as ITV Digital in July 2001. Low audience figures, piracy issues and an ultimately unaffordable multi-million pound deal with the Football League led to the broadcaster suffering massive losses, forcing it to enter administration in March 2002. Pay television services ceased permanently on 1 May 2002, and the remaining free-to-air channels such as BBC One and Channel 4 had ceased when the company was liquidated in October. The terrestrial multiplexes were subsequently taken over by Crown Castle and the BBC to create Freeview later that month.
Before the implementation of a points deduction it was perceived that clubs had "manipulated and abused [administration] as a way of shedding debts then restructuring, and borrowing again once the hapless creditors had been fobbed off with their 8p in the pound".In September 2003, it was proposed that clubs entering administration would be docked 10 points. A 'fit and proper persons' test was also introduced in an attempt to prevent fraudulent activities. If a person was previously director at a club which was in "administration twice during a five-year period" or at "two different clubs that have each gone into administration in a five-year period" then they would be prevented from becoming the controlling shareholder of a Football League club. A 'fit and proper persons' test was also introduced for directors of Premier League clubs. In November 2009, Stephen Vaughan, Sr. became the first director to fail the 'fit and proper persons' test.
The Premier League is the top level of the English football league system. Contested by 20 clubs, it operates on a system of promotion and relegation with the English Football League (EFL).
To ease financial problems for clubs that had been relegated, "parachute payments" were introduced to give time to adapt to the financial gulf between divisions.The deductions of 10 points in the Football League and 9 points in the Premier League were ratified in 2004, with the rule in place from the start of the 2004–05 season. The League also adopted rules that prevented any side from being in administration for either two successive seasons or eighteen consecutive months. The reason for the deduction being a point less in the Premier League was that the teams play eight fewer fixtures than Football League clubs. The first club to incur this new penalty were League One side Wrexham F.C. who entered administration on 3 December 2004.
Leeds United filed for administration with only a few days remaining in the 2006–07 season, which automatically triggered a 10-point penalty. This placed Leeds at the bottom of the table and relegated the club, but they were extremely likely to have been relegated anyway. By entering administration during the 2006–07 season, they hoped to avoid starting the 2007–08 season on −10 points. The following week, Boston United entered administration in the final minutes of a defeat to Wrexham which ensured they were relegated to the Football Conference, meaning they likewise avoided starting the following season on -10 points (though they would find themselves being double-relegated to the Conference North for unrelated reasons).The Football League saw both cases as clubs trying to exploit a loophole, and changed the rules. From 2007–08, any club entering administration after the fourth Thursday in March would have their 10-point deduction suspended until the following season. If the club is relegated the points will be deducted from their tally at the start of next season. If the club stays up the 10 points will be taken off their final total.
The 2006–07 Football League Championship was the third season of the league under its current title and fifteenth season under its current league division format.
Boston United Football Club is an English football club based in Boston, Lincolnshire. The club participates in the National League North, the sixth tier of English football. The club is known as 'the Pilgrims' in reference to the Pilgrim Fathers, who left England and sailed to North America and founded Boston, Massachusetts. The club's crest, the pilgrim fathers' ship 'The Mayflower', is also a reference to them. The club's traditional colours are amber and black. Boston's neighbours include Lincoln City, Scunthorpe United and Grimsby Town. The club is one of only 12 in the country to run a Centre of Excellence, provides a Study Support Centre and is also the basis of the 'Boston United Football in the Community Scheme'.
Wrexham Association Football Club is a professional association football club based in Wrexham, Wales that plays in the National League, the fifth tier of the English football league system. Formed in 1864, they are the oldest club in Wales and the third oldest professional football team in the world. Since August 2011 Wrexham have been a supporter-owned football club.
On 26 February 2010, Portsmouth became the first Premier League club to enter administration.
Portsmouth Football Club is an English professional association football club in Portsmouth, Hampshire, which plays in EFL League One, the third tier of English football. The club was founded on 5 April 1898 and home matches are played at Fratton Park in Milton, Portsmouth.
In a situation of insolvency, the "football creditors rule" means that debts to other clubs or players are prioritised and must be paid in full before the club is eligible to compete again in the league.The Enterprise Act 2002 made reforms to the insolvency act and, from 15 September 2003, the altered procedures for administration were implemented. Most notably it abolished the Crown's preferential right to recover unpaid taxes ahead of other creditors. As such, HM Revenue and Customs (HMRC) is now often not paid in full (between 2003 and 2010, outstanding unpaid taxes to the HMRC amounted to £30 million). This legality of the football creditors rule was challenged in 2004 in Inland Revenue Commissioners v The Wimbledon Football Club Ltd . However, it was found that "full payment to football creditors (out of third party funds) ahead of preferential creditors did not infringe the provisions of section s4(4)(a) of the Act" and "differential treatment may be necessary to secure the continuation of the company's business and may be regarded as supportable".
In 2011 HMRC brought another challenge to the football creditors rule in the High Court, this time on the basis that it breached fundamental principles of insolvency law, including the pari passu rule that all unsecured creditors should be paid on a proportionate basis. However, in May 2012 the court rejected the challenge as it found that the rule was not a deliberate evasion of insolvency law.
This section needs to be updated.March 2017)(
|Charlton Athletic||February 1984||March 1984||Second Division||None|
|Middlesbrough||21 May 1986||July 1986 ||Third Division||None|
|Tranmere Rovers||1987||1987||Fourth Division||None|
|Newport County||1989||February 1989|
|Walsall||1990[ citation needed ]||−||−||None|
|Northampton Town||1992[ citation needed ]||−||−||None|
|Kettering Town||1992[ citation needed ]||−||−||None|
|Aldershot||1992[ citation needed ]||−||−||None|
|Maidstone United||1992[ citation needed ]||−||−||None|
|Hartlepool United||1994[ citation needed ]||−||−||None|
|Barnet||1994[ citation needed ]||−||−||None|
|Exeter City||1994[ citation needed ]||−||−||None|
|Gillingham||1995[ citation needed ]||−||−||None|
|Doncaster Rovers||1997[ citation needed ]||−||−||None|
|Millwall||21 January 1997||June 1997||Second Division||None|
|Bournemouth||1997[ citation needed ]||−||−||None|
|Crystal Palace||1998[ citation needed ]||July 2000||Second Division||None|
|Chester City||October 1998||July 1999||Third Division||None|
|Portsmouth||1998[ citation needed ]||1999||Second Division||None|
|Hull City||7 February 2001||12 March 2001||Third Division||None|
|Queens Park Rangers||2 April 2001||17 November 2002||First Division||None|
|Halifax Town||9 April 2002||March 2003|| Third Division |
|Bradford City||16 May 2002||1 August 2002||First Division||None|
|Notts County||June 2002||December 1993||Third Division||None|
|Barnsley||3 October 2002||25 October 2003||Second Division||None|
|Leicester City||21 October 2002||16 November 2004||First Division||None|
|Port Vale||16 December 2002||2003||Second Division||None|
|York City||18 December 2002||26 March 2003||Third Division||None|
|Derby County||20 October 2003||20 October 2003||Championship||None|
|Ipswich Town||10 February 2003||30 May 2003||First Division||None|
|Wimbledon||5 June 2003||21 June 2004 (As MK Dons)||First Division||None|
|Darlington||23 December 2003||26 May 2004||Third Division||None|
|Bradford City||27 February 2004||10 December 2004|| First Division |
|Wrexham||3 December 2004||3 August 2006|| League One |
|Cambridge United||29 April 2005||22 July 2005||League Two||−10 pts|
|Rotherham United||13 May 2006||???||League One||−10 pts|
|Crawley Town||5 June 2006||10 August 2007||Conference National||−6 pts|
|Boston United||25 April 2007||20 May 2008||League Two||−10 pts|
|Leeds United||4 May 2007||11 July 2007|| Championship |
|Luton Town||22 November 2007||28 July 2008|| League One |
|Bournemouth||8 February 2008||18 July 2008|| League One |
|Rotherham United||18 March 2008||2008||League Two||−10 pts|
|Halifax Town||26 March 2008||13 June 2008||Conference National||−10 pts|
|Darlington||25 February 2009||7 August 2009||League Two||−10 pts|
|Southampton||2 April 2009||8 July 2009|| Championship |
|Stockport County||30 April 2009||18 June 2010||League One||−10 pts|
|Chester City||17 May 2009||10 March 2010 |
|Conference National||−25 pts|
|Northwich Victoria||15 May 2009||16 May 2010||Conference National||−10 pts|
|Farsley Celtic||30 June 2009||10 March 2010|
|Conference North||−10 pts|
|Salisbury City||3 September 2009||26 February 2010||Conference National||−10 pts|
|Weymouth||28 October 2009||27 November 2009||Conference South||None|
|Crystal Palace||26 January 2010||20 August 2010||Championship||−10 pts|
|Portsmouth||26 February 2010||24 October 2010||Premier League||−9 pts|
|Plymouth Argyle||4 March 2011||31 October 2011||League One||−10 pts|
|Rushden and Diamonds||7 July 2011||8 July 2011|
|Darlington||3 January 2012||21 June 2012|
|Conference National||−10 pts|
|Portsmouth||17 February 2012||19 April 2013||Championship||−10 pts|
|Port Vale||9 March 2012||20 November 2012||League Two||−10 pts|
|Coventry City||21 March 2013|| League One |
|−10 pts |
|Aldershot Town||2 May 2013||31 July 2014|| League Two |
|Bolton Wanderers||13 May 2019|| Championship |
Following the adoption of a points sanction in the English Football League, a similar rule was proposed for adoption by the Scottish Premier League (SPL) in December 2003. –08 season and Rangers in 2011–12.It was announced in January 2004 that SPL clubs going into administration in the 2004–05 season would be subject to a 10-point deduction and be prevented from signing new players. With Motherwell and Dundee already in administration at the time, it was decided that if "they are not in the process of coming out of administration by 31 May", the deduction would be applied at the start of the following season. Furthermore, the Scottish Football Association would not allow clubs in administration to play in European competition. Both Motherwell and Dundee met the required conditions to avoid the deduction of points. The 10 point penalty was subsequently applied to Gretna in the 2007
Although the Scottish Football League (SFL) had no automatic deduction of points for clubs going into administration, it reserved the right to "deduct championship points before or during a season and/or to impose a player registration embargo on any club". –11 season because it was the second time they had entered administration in a relatively short period. The SFL also had the power to place a team in the bottom tier (Third Division) if there were any doubts that the club could fulfill their fixtures for the forthcoming season.This meant that its penalties for insolvency varied; Dundee were docked 25 points in the 2010
The administration and liquidation of The Rangers Football Club Plc prompted much discussion in Scotland about what sanctions (if any) are appropriate for an insolvent club. –1 majority. The SPL attempted to negotiate a deal with the SFL whereby Rangers would enter the First Division (second tier). This was rejected by SFL clubs, who instead voted for Rangers to be granted associate membership of the SFL and a place in the Third Division (fourth tier).When Rangers entered administration in February 2012, the club was docked 10 points in the 2011–12 Scottish Premier League. The SPL clubs agreed to amend the penalty for administration to the greater of 10 points or one third of the club's tally in the previous season. Rangers attempted to agree a CVA with its creditors, but this offer was rejected by HMRC in June 2012. The business and assets of Rangers were instead sold to a new company. One of Rangers' assets was its membership of the SPL, but this could not be transferred without the approval of the other SPL clubs. Rangers' application for transfer was rejected by a 10
When the SPL and SFL merged to form the Scottish Professional Football League (SPFL) in 2013, the penalty for entering administration was standardised as 15 points. –14 season under the old SPL rules, as they had earned 44 points in the 2012–13 season.Hearts entered administration days before the leagues merged and were docked 15 points for the 2013
|Queen's Park||10 January 2000||3 April 2000||Third Division||None|
|Greenock Morton||15 December 2000||8 August 2001||First Division||None|
|Clydebank||23 December 2000||9 July 2002|
Became Airdrie United
|Airdrieonians||21 May 2002|
|Motherwell||24 April 2002||20 April 2004||SPL||None|
|Dundee||25 November 2003||6 August 2004||SPL||None|
|Livingston||3 February 2004||13 May 2005||SPL||None|
|Gretna||10 March 2008||8 August 2008|
|SPL||−10 pts |
Demoted to Third Division
|Livingston||24 July 2009||13 August 2009||First Division||Demoted to Third Division|
|Dundee||14 October 2010||12 May 2011||First Division||−25 pts|
|Rangers||14 February 2012||14 June 2012||SPL||−10 pts |
After its membership of the SFA was transferred to a new company, Sevco Scotland Ltd, Rangers were admitted to the Third Division.
|Dunfermline Athletic||27 March 2013||13 December 2013||First Division||−15 pts|
|Heart of Midlothian||19 June 2013||11 June 2014||SPL||−15 pts|
|Crusaders R.L.||12 November 2010||27 December 2010||Rugby league||Super League||−4 pts|
|Wakefield Trinity||1 December 2010||17 February 2011||Rugby league||Super League||−4 pts|
Rangers Football Club is a football club in Glasgow, Scotland, which plays in the Scottish Premiership, the first tier of the Scottish Professional Football League. Their home ground, Ibrox Stadium, is in the south-west of the city in the Govan district. Although not part of the official name, the club is occasionally referred to as Glasgow Rangers.
The Scottish Premier League (SPL) was the top level league competition for professional football clubs in Scotland. The league was founded in 1998, when it broke away from the Scottish Football League (SFL). It was abolished in 2013, when the SPL and SFL merged to form the new Scottish Professional Football League, with its top division being known as the Scottish Premiership. A total of 19 clubs competed in the SPL, but only the Old Firm clubs, Celtic and Rangers won the league championship.
Heart of Midlothian Football Club, commonly known as Hearts, is a Scottish professional football club based in the Gorgie area of Edinburgh, Scotland, that plays in the Scottish Premiership, the top tier in Scottish football. Hearts are the oldest football club in the Scottish capital, as they were formed in 1874 by a group of friends from the Heart of Midlothian Quadrille Assembly, whose name was influenced by Walter Scott's novel The Heart of Midlothian. The modern club crest is based on the Heart of Midlothian mosaic on the city's Royal Mile and the team's colours are predominantly maroon and white.
Alistair Murdoch McCoist, is a Scottish former footballer, who has since worked as a manager, pundit and actor.
Steven Davis is a Northern Irish professional footballer who plays as a midfielder for Scottish Premiership club Rangers on loan from Premier League club Southampton and the captain of the Northern Ireland national team. Davis made his full international debut in 2005 and has since been capped 108 times at senior level, scoring twelve goals. He captained his nation at UEFA Euro 2016.
Steven John Pressley is a Scottish football player and coach, who is currently the manager of Carlisle United.
Allan James McGregor is a Scottish professional footballer who plays as a goalkeeper for Scottish Premiership club Rangers. McGregor has also previously played for St Johnstone, Dunfermline Athletic, Turkish team Beşiktaş, English club Hull City, Welsh side Cardiff City and the Scotland national team.
The 2002–03 Scottish Premier League was the fifth season of the Scottish Premier League (SPL), the top level of football in Scotland. It began on 3 August 2002 and concluded on 25 May 2003.
The 2001–02 Scottish Premier League was the fourth season of the Scottish Premier League, the top level of football in Scotland. It began on 28 July 2001 and concluded on 12 May 2002.
Barry Smith is a Scottish football player and coach, who is the manager of Brechin City. Smith played in the right back, centre back, and defensive midfielder roles for Celtic, Dundee, Valur, Partick Thistle, Greenock Morton and Brechin City. Smith was admitted into Dundee's Hall of Fame having made 400 appearances for the club.
The 2007–08 Scottish Premier League season was the tenth season of the Scottish Premier League. It began on 4 August 2007 and was originally due to end on 18 May 2008. Due to the death of Phil O'Donnell and extremely poor weather causing the postponement of fixtures during the winter, as well as a backlog of Rangers fixtures and their progression to the UEFA Cup Final, the SPL decided to move the final round of fixtures back four days to 22 May 2008. It was the first season under the sponsorship of the Clydesdale Bank.
Derek Watt Adams is a Scottish football manager and former player. He last managed Football League One club Plymouth Argyle from 2015 to 2019. Adams played professionally for six different clubs, including Ross County and Motherwell, where he made over 100 league appearances for both teams.
The Football League 2008–09, known as the Coca-Cola Football League for sponsorship reasons, is the 17th season under its current league division format. It began in August 2008 and concluded in May 2009, with the promotion play-off finals.
The 2011–12 Scottish Premier League was the fourteenth season of the Scottish Premier League, the highest division of Scottish football, since its inception in 1998. The season started on 23 July 2011 and ended on 13 May 2012.
The 2011–12 season was Motherwell's thirteenth consecutive season in the Scottish Premier League, having competed in it since its inauguration in 1998–99. Motherwell finished 3rd in the league, qualifying for the UEFA Champions League, were knocked out of the Scottish Cup at the Quarter-Finals stage by Aberdeen, and knocked out at the 3rd Round stage by Hibernian in the League Cup.
The 2012–13 Scottish Premier League was the fifteenth and final season of the Scottish Premier League, the highest division of Scottish football, since its inception in 1998. The season began on 4 August 2012 and ended on 19 May 2013.
The 2012–13 season was Livingston's second consecutive season in the First Division, having been promoted after winning the Scottish Second Division during season 2010–11. They also competed in the Challenge Cup, League Cup and the Scottish Cup.
The 2012–13 season was Dunfermline Athletic's first season back in the Scottish First Division, having been relegated from the Scottish Premier League at the end of the 2011–12 season. Dunfermline Athletic also competed in the Challenge Cup, League Cup and the Scottish Cup.
The 2012–13 season was the 116th season of competitive football in Scotland. The season began on 28 July 2012, with the start of the Challenge Cup.
Rangers, a football club in Scotland, entered financial difficulties during the late 2000s. The club, trading as The Rangers Football Club plc, entered administration in February 2012. It owed substantial amounts to HM Revenue and Customs (HMRC), who subsequently refused to allow Rangers to exit administration via a Company Voluntary Arrangement (CVA). The Rangers Football Club plc entered liquidation on 31 October 2012.