Offside

Is it fair that football clubs owing millions of pounds to HMRC can write most of it off by going into administration, without necessarily incurring commensurate league penalties?

I ask the question because the Donal MacIntyre programme have done a special on the unpaid tax bill of clubs who have recently entered administration - some £28m by their calculations (which is in a statistical error as far as government is concerned, but that seems moot).

As a Leeds United fan my views are shaped by experience rather than strict logic. I agree that it seems unfair that, as Alan Sugar put it, "Leeds spent millions and millions of pounds, go bust and the following Saturday start again".

But should clubs who go into administration be thrown out of the football league, instead of incurring a points penalty as at present?

I don't know what purpose that would serve, except to get get one over on long-standing rivals. Leeds United were relegated twice in just a few years, sold their stadium and lease it back, now languish in League One, and have had to assemble an entirely new team mainly through reliance on free transfers and youth players. 

Hardly "starting again". Going bust was in no way the best thing that happened at Elland Road, except that financial security now seems to be a principle aim of the club. The couple of years of Champions League action were evidently not worth the price Leeds have subsequently paid.

That an increasing number of clubs enter administration implies a symptom of a deeper problem, probably the increasing inequality in revenue between clubs in the Premier League and those in lower leagues.

To be successful today, clubs have to spend. And to be really successful, clubs have to spend a lot. Premier League TV deals have increased the pressure on all clubs in terms of cost of players, and wages. As a result, costs have risen far faster than gate receipts for many clubs. But without spending, teams cannot guarantee footballing success which potentially increases revenues.

That footballing debts are honoured at 100% when a football team goes bust whereas non-footballing debts are not is anomalous. But the wider rules of administration - that clubs coming out of administration pay less than 100% of the debt owed - should not be changed just for football clubs.

Kicking clubs when they are down in the way Sugar suggests doesn't help address wider failings in football league management. The Football League should put appropriate measures in place to ensure that clubs do not put themselves into financially precarious positions. 

One suggestion may be to apply points penalties to clubs whose wage bill exceeds a certain ratio of revenue. Whatever, more can and should be done to ensure clubs do not go into administration, instead of applying additional and harsher penalties when they do.