Dunfermline Athletic Likely To Be Saved… But At A Price

At the start of yesterday, the fate of Dunfermline Athletic hung very much in the balance, but at least by its end it was a little clearer. The Scottish First Division club had until five o’clock yesterday to pay an outstanding ¬£134,000 bill to HMRC over unpaid tax or face the threat of liquidation, and in the middle of yesterday afternoon the club the club confirmed that it was to seek to enter into administration in order to side-step the inevitable insolvency proceedings brought against the club by the taxman. Such a decision buys the club a little more time and, considering the fact that no-one was likely to step in at the last minute with the money required to pay them off, this was effectively the only option available to the club. What is interesting for viewers of this story from south of the border is the extent to which the difference in rules and regulations¬† are influencing the decisions to be made in Scotland. There is no football creditors rule in Scotland, meaning that players do not have the same level protection afforded to them as their counterparts in England would have. Once the club has entered into administration, the players may be requested to take a pay cut by the administrator, who cannot by law allow the club to continue to trade insolvently, and it would...

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