The Revenue and Customs have missed out on millions of pounds because the football bosses have allowed clubs going into administration to circumvent the rules. A programme on BBC Five Live last night covered the subject.
When Hereford United were in trouble it paid most of what it owed to the taxman but many clubs have got away paying just 10% on what they owed.
Below are some more details as posted on the excellent official Altrincham website.
Of the 42 clubs at League or Conference level which have gone into administration since 2000, the programme managed to get hold of the figures relating to 18 clubs. These alone revealed that a total of £31 million was owed, mostly in income tax and non-payment of National Insurance. Of the £31M owed, just £3M has or is being been repaid - leaving the taxpayer and others with a shortfall of £28 million.
This situation arose to a large degree because of the arrangement whereby so-called "football creditors" such as players and other clubs get paid out before everyone else including the tax man. For example, Luton town were quoted as having had, last season, a £2.5 million tax debt built up over two years. Of this, they are paying back just £275K. Neverthless, the Hatters felt they could afford to spurn £37K in TV fees from Setanta TV last week when they refused to move their FA Cup replay with Altrincham to a Thursday night.
Other debtors cited were as follows, where the first figure is the debt, and the second the amount repaid.
Leicester City League One: £7m £700k
Leeds United League One: £6.8m £680k
Ipswich Town Championship: £5m £391k
Bradford City League Two: £2.6m £26k
Luton Town League Two: £2.5m £275k
Wrexham Blue Square Prem: £1.45m £507k
Bournemouth League Two: £1m £100k
Halifax Town Unibond Division One North: £795k £0k
Huddersfield League One: £723k £101k
Cambridge U Blue Square Prem: £532K £101k
Oldham League One: £520k £260k
Notts County League Two: £487k £96k
Wimbledon (now MK Dons) League One: £460k £0
Rotherham League Two: £450k £20k
Exeter City League Two: £442k £62k
Darlington League Two: £416k £2k
Lincoln City League Two: £350k £143k
Crawley Town Blue Square Prem: £193k £96K
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