Chairman of an English Championship Football Club

Service(s): Personal Insolvency & Advisory Services
Sector: Sports

The politician chairman of an English Championship Football Club was subject to a £8m personal guarantee demand by a bank, as a result of the Club’s poor financial performance. The Club was already subject to a formal demand by the bank for this sum, as well as for further amounts, and was facing the commencement of administration proceedings within a few days. 

Charles Turner was appointed by the individual to establish the best course of action for himself, whilst seeking to avoid the administration of the Club. Having conducted a thorough review of the personal financial circumstances of the individual, Charles determined that a deal needed to be done to avoid serious and damaging consequences for all concerned, namely the individual, the Club and the key bank creditor. 

Time was of the essence and Charles commenced an urgent review of the individual’s UK and overseas assets with a view to informing negotiations with the bank, the football club and other key stakeholders, including members of the individual’s family who would undoubtedly have been drawn into any formal insolvency proceedings, given that certain assets were subject to wider family interests. 

A settlement was reached following intense negotiations, which were not concluded until minutes before a court deadline on the impending Club administration. The outcome avoided an insolvent administration of the Club, as well as the personal bankruptcy of the chairman. It also avoided damaging and expensive litigation which was to the benefit of all concerned. 

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