That elusive number of insolvent football clubs
Posted by John Beech on February 13, 2012
Today’s breaking news makes for grim reading.
First there are the reports that Portsmouth is to go into Administration again (1). With the club’s bank account now frozen, players and other staff unpaid, and an early parachute payment in the offing, this comes as no great surprise.
Meanwhile, North of the Border, it is reported that Rangers are declaring their intention of going into Administration (2). In theory at least, Administration might yet be avoided – they might manage to negotiate a deal with their creditors, but this seems unlikely as it involves HMRC and a sum of £49m , or they might find a new owner in the meantime (which seems almost as unlikely). The process of ‘declaring intent ‘ provides a company with temporary protection from creditors. Two precedents from English football spring to mind: Plymouth Argyle (who did subsequently go into Administration) and Coventry City in 2007 (who found a buyer in the nick of time, thus avoiding Administration).
Those interested in the complexities of what has been going on at Rangers should follow the excellent Rangerstaxcase blog.
It was the case of Coventry City that prompted me back then to find what proved to be an elusive number – the number of top flight clubs that had gone into Administration. So elusive did it prove to be that I started compiling relevant data in an attempt to produce it myself. The results of this research I have now added to the blog on a new page No. of Clubs, accessible by clicking on the link or from the top menu. Please read the bumf at the top of that page before diving in!