Paid in Full: A Critical Look at the Law and Economics of the Football Creditors Rule
The Football League has recently modified its Football Creditors Rule. Once the sport’s financial regulatory bête noire, the changes met with little fanfare. However, these amendments do not fundamentally change the essential structure of a regime that has seen criticism from the media, the judiciar...
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| Format: | Article |
| Language: | English |
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University of Westminster Press
2016-12-01
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| Series: | Entertainment and Sports Law Journal |
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| Online Access: | https://www.entsportslawjournal.com/article/id/838/ |
| _version_ | 1811185800010792960 |
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| author | Christopher Flanagan |
| author_facet | Christopher Flanagan |
| author_sort | Christopher Flanagan |
| collection | DOAJ |
| description | The Football League has recently modified its Football Creditors Rule. Once the sport’s financial regulatory bête noire, the changes met with little fanfare. However, these amendments do not fundamentally change the essential structure of a regime that has seen criticism from the media, the judiciary, academics, and indeed has been subject to litigation by the British tax authorities. This paper examines the law and economics of insolvency in English football, framing the case of HM Revenue and Customs v. The Football League Limited & The Football Association Premier League Limited in its prevailing economic context and considering the particular legal challenge brought by HM Revenue and Customs, which was ultimately unsuccessful. Moving beyond the decision in the above cited case, a critique of the underlying cogency and validity of the Football Creditors Rule is provided, which is centred on the views espoused by Michael J. Sandel in What Money Can’t Buy: The Moral Limit of Markets. Particularly, it is posited that the nature of the rule has served to debase the norms that should govern football clubs’ financial management and has instead abetted a climate of free spending by systemically diminishing the downside risk of insolvency between football clubs. |
| first_indexed | 2024-04-11T13:35:24Z |
| format | Article |
| id | doaj.art-560e1c520f0046c9b5a81f7d9ca57384 |
| institution | Directory Open Access Journal |
| issn | 1748-944X |
| language | English |
| last_indexed | 2024-04-11T13:35:24Z |
| publishDate | 2016-12-01 |
| publisher | University of Westminster Press |
| record_format | Article |
| series | Entertainment and Sports Law Journal |
| spelling | doaj.art-560e1c520f0046c9b5a81f7d9ca573842022-12-22T04:21:29ZengUniversity of Westminster PressEntertainment and Sports Law Journal1748-944X2016-12-0114010.16997/eslj.203Paid in Full: A Critical Look at the Law and Economics of the Football Creditors RuleChristopher Flanagan0TLT LLPThe Football League has recently modified its Football Creditors Rule. Once the sport’s financial regulatory bête noire, the changes met with little fanfare. However, these amendments do not fundamentally change the essential structure of a regime that has seen criticism from the media, the judiciary, academics, and indeed has been subject to litigation by the British tax authorities. This paper examines the law and economics of insolvency in English football, framing the case of HM Revenue and Customs v. The Football League Limited & The Football Association Premier League Limited in its prevailing economic context and considering the particular legal challenge brought by HM Revenue and Customs, which was ultimately unsuccessful. Moving beyond the decision in the above cited case, a critique of the underlying cogency and validity of the Football Creditors Rule is provided, which is centred on the views espoused by Michael J. Sandel in What Money Can’t Buy: The Moral Limit of Markets. Particularly, it is posited that the nature of the rule has served to debase the norms that should govern football clubs’ financial management and has instead abetted a climate of free spending by systemically diminishing the downside risk of insolvency between football clubs.https://www.entsportslawjournal.com/article/id/838/sports lawMichael Sandelfinancial regulationinsolvencyFootball Creditors Rule |
| spellingShingle | Christopher Flanagan Paid in Full: A Critical Look at the Law and Economics of the Football Creditors Rule Entertainment and Sports Law Journal sports law Michael Sandel financial regulation insolvency Football Creditors Rule |
| title | Paid in Full: A Critical Look at the Law and Economics of the Football Creditors Rule |
| title_full | Paid in Full: A Critical Look at the Law and Economics of the Football Creditors Rule |
| title_fullStr | Paid in Full: A Critical Look at the Law and Economics of the Football Creditors Rule |
| title_full_unstemmed | Paid in Full: A Critical Look at the Law and Economics of the Football Creditors Rule |
| title_short | Paid in Full: A Critical Look at the Law and Economics of the Football Creditors Rule |
| title_sort | paid in full a critical look at the law and economics of the football creditors rule |
| topic | sports law Michael Sandel financial regulation insolvency Football Creditors Rule |
| url | https://www.entsportslawjournal.com/article/id/838/ |
| work_keys_str_mv | AT christopherflanagan paidinfullacriticallookatthelawandeconomicsofthefootballcreditorsrule |