Post by Macmoish on Jul 25, 2010 7:25:18 GMT
I mean nobody asked them (or others!) to rack up bills/not pay debts
Guardian
Sheffield Wednesday accuse taxman of 'disproportionate action'
• Wednesday assure fans club is not about to be wound up
• Co-op bank calls taxman's petition over debt 'disappointing'
(2)Tweet this (11)Matt Scott guardian.co.uk, Friday 23 July 2010
Sheffield Wednesday's admission today that they have received notification of a petition to wind them up constitutes the fifth time in three months the taxman has taken action against a football club.
The League One club, relegated from the Championship last season, join Cardiff City, Portsmouth, Preston North End and Southend United in having been served with papers at the high court since May. Wednesday are due to appear there on 11 August over a £500,000 debt relating to salary-related taxes.
The club will counter any threat of a winding-up and accused HM Revenue & Customs of "disproportionate" action. A spokesman said: "Sheffield Wednesday would like to inform supporters their club is not about to be wound up. We have been involved in dialogue with HMRC for a number of weeks. As such, we are disappointed by their decision.
"We understand HMRC is taking a tougher line with football clubs, but feel their actions are disproportionate and will raise unnecessary speculation as to the financial situation of the club."
Unusually, Wednesday do enjoy the support of their primary lender. In a departure from the wall of silence banks normally throw up in such situations, the Co-op has spoken of its belief that patience from HMRC would be better advised, given that there is the potential for outside investment in the club.
"It is disappointing to note HMRC has presented a winding-up order in respect to Sheffield Wednesday," said the bank in a statement. "The Co-operative Bank has been working extremely hard for some time with the club and investors to explore ways to ensure its future stability.
"We are continuing to enter into dialogue with our advisers, Sheffield Wednesday and potential investors to explore solutions which will allow the club to operate on a sound and secure financial footing."
That statement should give Wednesday supporters hope their situation is less debilitating than that of Cardiff, Southend and Portsmouth. Also working in their favour is the fact this is the first time they have been pursued through the courts by HMRC – the others have long-running histories of dispute with the taxman.
HMRC declined to comment, but in previous cases against clubs it has stated it does not take action lightly.
Crystal Palace, who sent Wednesday through the relegation trapdoor on the last day of the season, are poised to come out of administration after the deadline to appeal against their Company Voluntary Agreement passed. The Eagles were placed in administration in January and avoided going bust last month only when Steve Parish's CPFC 2010 consortium agreed a rescue package.
CPFC 2010 can now apply for a transfer of Palace's Football League share and take full control, while the transfer embargo will be lifted.
The administrator Brendan Guilfoyle said: "This is now the beginning of the end of the rescue of Crystal Palace. I am delighted and would like to express my sincere gratitude for the support and patience of the staff and fans and everyone involved at Crystal Palace.
"I would like to say a special thank you to Steve Parish. Without his determination and tenacity it would not have been possible to resolve the many difficulties that arose during such complex and lengthy negotiations."
www.guardian.co.uk/football/2010/jul/23/sheffield-wednesday-winding-up-order
Guardian
Sheffield Wednesday accuse taxman of 'disproportionate action'
• Wednesday assure fans club is not about to be wound up
• Co-op bank calls taxman's petition over debt 'disappointing'
(2)Tweet this (11)Matt Scott guardian.co.uk, Friday 23 July 2010
Sheffield Wednesday's admission today that they have received notification of a petition to wind them up constitutes the fifth time in three months the taxman has taken action against a football club.
The League One club, relegated from the Championship last season, join Cardiff City, Portsmouth, Preston North End and Southend United in having been served with papers at the high court since May. Wednesday are due to appear there on 11 August over a £500,000 debt relating to salary-related taxes.
The club will counter any threat of a winding-up and accused HM Revenue & Customs of "disproportionate" action. A spokesman said: "Sheffield Wednesday would like to inform supporters their club is not about to be wound up. We have been involved in dialogue with HMRC for a number of weeks. As such, we are disappointed by their decision.
"We understand HMRC is taking a tougher line with football clubs, but feel their actions are disproportionate and will raise unnecessary speculation as to the financial situation of the club."
Unusually, Wednesday do enjoy the support of their primary lender. In a departure from the wall of silence banks normally throw up in such situations, the Co-op has spoken of its belief that patience from HMRC would be better advised, given that there is the potential for outside investment in the club.
"It is disappointing to note HMRC has presented a winding-up order in respect to Sheffield Wednesday," said the bank in a statement. "The Co-operative Bank has been working extremely hard for some time with the club and investors to explore ways to ensure its future stability.
"We are continuing to enter into dialogue with our advisers, Sheffield Wednesday and potential investors to explore solutions which will allow the club to operate on a sound and secure financial footing."
That statement should give Wednesday supporters hope their situation is less debilitating than that of Cardiff, Southend and Portsmouth. Also working in their favour is the fact this is the first time they have been pursued through the courts by HMRC – the others have long-running histories of dispute with the taxman.
HMRC declined to comment, but in previous cases against clubs it has stated it does not take action lightly.
Crystal Palace, who sent Wednesday through the relegation trapdoor on the last day of the season, are poised to come out of administration after the deadline to appeal against their Company Voluntary Agreement passed. The Eagles were placed in administration in January and avoided going bust last month only when Steve Parish's CPFC 2010 consortium agreed a rescue package.
CPFC 2010 can now apply for a transfer of Palace's Football League share and take full control, while the transfer embargo will be lifted.
The administrator Brendan Guilfoyle said: "This is now the beginning of the end of the rescue of Crystal Palace. I am delighted and would like to express my sincere gratitude for the support and patience of the staff and fans and everyone involved at Crystal Palace.
"I would like to say a special thank you to Steve Parish. Without his determination and tenacity it would not have been possible to resolve the many difficulties that arose during such complex and lengthy negotiations."
www.guardian.co.uk/football/2010/jul/23/sheffield-wednesday-winding-up-order