Football Debt Warning

Football is "heading for the precipice" because of excessive debt levels, a leading figure in the game has warned.
Football League chief Greg Clarke was giving evidence to a government inquiry into the governance of the game.
"The level of debt is unsustainable. We are heading for the precipice and will get there quicker than people think."

MPs on the select committee asked questions about the controversial football creditors rule, which demands that football debts are the first priority for clubs which fall into financial difficulty.

Her Majesties Revenue and Customs have long complained about the rule, as it places paying debts to football clubs ahead of repaying the public purse.

Gordon Taylor, chief executive of the Professional Footballers' Association, told the inquiry that two thirds of the 92 league clubs had faced financial difficulties.

Sheffield Wednesday and Plymouth are just two Football League clubs to have faced winding-up orders recently, while Crystal Palace entered administration in January 2010 before being bought by a consortium made up of several wealthy fans.

The Department for Culture, Media and Sport select committee is holding a series of hearings over the coming weeks before making its report to Parliament.

The Sports Minister Hugh Robertson has described football as "the worst run sport in the country".

Source: http://news.bbc.co.uk/sport1/hi/football/9398585.stm

This certainly does not make good reading. How will this process be prevented? Is it the fault of the rich billionnaires who are paying crazy wages which has a knock on effect?