Author: Guy Thomas Earlier this week, Brendan Guilfoyle, Chris White and John Russell of the P & A Partnership (an insolvency firm based in Sheffield) were appointed administrators of Crystal Palace FC. This has been well reported over the last couple of days by BBC online - click here to view . …and football fans should expect more of this type of response from the directors of struggling football clubs. Directors of struggling companies facing likely insolvency must also take into account the interests of creditors as well as their shareholders. Other stakeholders such as fans without a direct financial interest in the company often feel they are left behind by such choices. Football clubs and the directors that run them are no different to other companies in having to strike that balance. The expectation on people who have financially supported clubs through tough times to “dig deeper” can be overwhelming. As Brendan Guilfoyle, one of Crystal Palaces administrators said earlier this week, “This club has been in the spotlight for some months with creditors pressing for payments and players anxious about their wages.” He went on to explain that “Our role now is to find a buyer quickly to provide certainty for the employees, players and fans for the future. We are hoping our appointment will be short-lived as we understand there are many interested buyers.” Crystal Palace reportedly has debts of circa. £30 million. They had been listed to appear in court on January 27th to face a winding-up petition from HM Revenue and Customs over a seven figure (unpaid) tax bill. By happy coincidence, Brendan Guilfoyle a former National President of R3 (the insolvency industries professional body) had recently published a cautionary article on recent developments in “football administrations” . Whether you are a football fan or a company director of a business unconnected to football, it makes for an interesting read and I thoroughly recommend it as an insight into the running of a ongoing trading company (such as a football club) by an administrator. Please click here to view Brendan Guilfoyle’s article.

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Football Club Blues: Crystal Palace FC Enters Administration

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