01604 212150 (Northampton) 01908 033150 (Milton Keynes) 01234 989150 (Bedford)
Last weeks laser tag event was a huge success.
A massive thank you to everyone who turned up and got involved. We’re incredibly grateful for your support and are so pleased to have brought young people together for a fun and memorable experience!
The independent football regulator recently released a damning report on football finance. Some of those findings were:
Since 2004 there have been 23 league clubs enter into an insolvency event (one of those twice and a second exited administration into a company voluntary arrangement). At PBC we have had experience, having handled two football administrations, while having also advised two other league clubs.
Many may say player wages are far too high, but that is not the principal reason for the current financial challenges, which include:
In a review of football governance undertaken by the Secretary of sport and culture, Gary Pettit of PBC was asked to contribute, where he suggested the governing rules are not fit for purpose. It does not matter if you are Arsenal or Peterborough; the rule requirements are the same. That is like saying the cost of repairing the bodywork of a Mini should be the same as that of a Rolls Royce. There is no recognition of the obvious difference. For example, as administrator of a non-league club Gary was asked by the Football Association why he was not looking to reduce overheads by selling players. In response Gary said, “If you can point out a player worth more than a Mars Bar then please point him out and I will sell him tomorrow. This is not Man United!”
A football club is often the centre of a community. When you look at Bury, Macclesfield or Chester, it was not simply a company failing, it had a direct impact on the population and was subject to far more press coverage than an everyday business. However, the fact remains most clubs rely on one person; a benefactor who is open to pouring money into the pit whereas, if it were a normal company their statutory duties would be telling them to close down abruptly.
A well-known business entrepreneur once said when you own a football club you hang your brains on the coat hanger at the entrance as you walk in. Unfortunately, that has been demonstrated on occasions, including a former World club champions rugby league club where they traded long beyond the point of no return on the high financial structure it had adopted.
If your business is experiencing financial difficulties and you need any advice, then please contact PBC Business Recovery & Insolvency on 01604 212150 (Northampton), 01908 033150 (Milton Keynes), 01234 989150 (Bedford) or email to enquiries@pbcbusinessrecovery.co.uk. Alternatively, visit www.pbcbusinessrecovery.co.uk for further information.
“How do I liquidate my company?” A common opening question when directors take that step to call PBC and it is indicative of the (wrong) perception of what must be done when a company is in financial difficulties.
The fact remains companies that are in financial difficulties have numerous options, all designed to address the size and nature of a business, together with the issues the company is experiencing. For example, companies with an annual turnover in excess of £10 million may consider a Corporate Restructuring Plan. Readers may recall Thames Water were in court in 2025 due to unmanageable levels of debt. That was proposals for a restructuring plan.
In general, companies have numerous options and these include (but not limited to:)
Administration
Administration is available to a company that is (or likely to become) insolvent. It is designed to protect a company whilst plans are formulated to achieve one of the statutory objectives. Administration is also available to a partnership and reference below to company and directors should be read as partnership or partners.
Pre-pack sale
A sale of the business is agreed but not completed until the administrator is appointed when they sign off the sale agreement. Where there are common directors, an independent evaluation of the potential sale must be obtained.
Company voluntary arrangement
A Company Voluntary Arrangement is a procedure which enables an insolvent company to reach an agreement with its creditors to delay or compromise the payment of its debts. A CVA is flexible and can be adapted to meet the needs of any business and allows a company to propose repayments in line with what is affordable.
Creditors voluntary liquidation
Creditors’ Voluntary Liquidation is a procedure whereby the directors of an insolvent company can voluntarily take steps to wind up the company. A CVL is designed to dispose of the company assets and distribute proceeds to creditors. CVL’s are the most common form of insolvency in the UK.
Compulsory liquidation
This is where a creditor of the company is owed £750 (or more) and petitions the court for winding up as a debt enforcement process. If the winding up order is made the regional official receiver becomes liquidator in the first instance.
Some of the other formal procedures can be used as a means to defeat a winding up petition, provided there is a clear benefit to the company creditors as a whole.
The above are the more common options available and there are times a company will use more than one of them during its time under an insolvency regime. However, the key message is the sooner directors take advice, the more options that are available, which is important on may levels, including preparation for the possible legacy following the company entering a specific process.
If you need any advice on the appropriate way forward for your business, then please contact PBC Business Recovery & Insolvency on 01604 212150 (Northampton), 01908 033150 (Milton Keynes), 01234 989150 (Bedford) or email to enquiries@pbcbusinessrecovery.co.uk. Alternatively, visit www.pbcbusinessrecovery.co.uk for further information.
