Rescuing the Gulls: From a restructuring perspective
19 June 2026
A year on since Torquay United AFC secured its financial freedom, two of the former joint office holders, Simon Haskew and Neil Vinnicombe, BTG Partners, share a behind-the-scenes view of the club’s rescue and their key takeaways.
When BTG partners were appointed administrators of Torquay United AFC in April 2024, the club’s debts ran into several millions. Financial losses had snowballed over the years, with Sport England, HMRC, other football clubs, and trade suppliers among a lengthy list of creditors.
An immediate restructuring process began, which culminated in a consortium takeover and a successful rescue under a Company Voluntary Arrangement (CVA), which the club formally exited in April 2025.
Challenges facing administrators
Sporting clubs vary widely in ownership structure, league hierarchy, and fan engagement, so navigating the rescue of Torquay United was anything but linear. From the emotional stakes held by fans, the indispensable power of PR and communications, to the complex unpicking of the club’s finances.
A trio of strategies
Three core considerations underpinned the case: the fans, the media, and the conflict. A strategy for each was essential to ensure a successful and streamlined club rescue.
The fans: As a club with a rich 125-year history, the successful rescue of Plainmoor, the Torquay United ground, was close to the hearts of the local community and a nationwide fanbase. While administrators worked on securing the long-term viability of Torquay United, carefully crafted updates were shared with fans to reassure them about the club’s future.
PR and communications strategies were firmly incorporated into morning briefings with the club’s board of directors. The briefings emphasised a strict sequence of messaging:
- Boardroom
- Staff
- Fans
- Media
The timing of the gap between the second to third tiers was held to a minimum, often seconds, to minimise leakage across digital platforms and social media.
The media: With the rescue of Torquay United, there was a constant need for administrators to be on the front foot with press releases, acting ahead of each release, and tracking the general mood. Creditor updates were carefully crafted, and press activity was strategically planned with cooperation from directors and board members.
Fans are the lifeblood of a club, so even perceived uncertainty around the club’s future was enough to drive down attendance, deter investors, and impact the club’s bottom line. A testament to this fan spirit was when the buyer emerged. A group of six local businessmen - the Bryn Consortium – are all lifelong Torquay United supporters.
The conflict: In this case, a trio of hurdles relating to trading issues, the sales process, and CVA terms arose, ranging from major clashes between football and insolvency priority rules, a gruelling sales process, to uncompromising CVA terms.
Issues and resolutions
Trading issues:
- Reliance on directors for financial information, operational knowhow, and continuity on a volunteer non-paid basis
- Business account facilities limited to challenger banks
- Embargo on player transfers due to football administration rules
Resolution:
- Opening lines of communication, often out of normal business hours
- Facilitating a temporary fix, rather than a long-term solution
- Adhering to strict rules about player numbers and transfer windows
Sales process:
- Falsified proof of funds and derisory £1 offers
- Conditional share purchase agreement (SPA) and compliance agreement
- Share deal required enhanced due diligence for the purchaser in a very limited time frame
Resolution:
- Diligently vetting offers and verifying all credentials
- Liaising closely with lawyers to ensure dovetailing of SPA and ancillary agreements with CVA proposal, with the deal being conditional on creditor approval
- Facilitating a very fast turnaround of detailed information to assist purchaser due diligence
CVA Terms:
- Terms of sale and terms of CVA proposal inextricably interwoven
- Football rules determined structure of deal and exit from administration
- FA standardised rules – 13.B which set out what happens when a club becomes insolvent
- Restricted timetable due to National League AGM and player signing window
- Payment of creditors in full – a major sticking point with purchaser due to contingent liability risk
- Major clash between football creditor rule and insolvency priority rules
- Unable to provide CVA trading forecast
Resolution:
- Drafting and redrafting detailed documentation because of co-dependency
- A “compliant creditor compromise” required all creditors paid in full (except connected parties) to avoid automatic relegation
- Addressing football creditor debts in the CVA, as required by the FA, avoiding a points deduction
- Delivering an approved CVA by the National Leagues AGM to retain the club’s membership, leaving time, albeit limited, for the new operator to sign a playing squad
- Accommodating more purchaser due diligence than a normal asset sale
- Ensuring that HMRC and football creditors were paid simultaneously in the CVA
- Providing the new operator’s viability statement (made to the football authorities as part of the Fit and Proper Test) to HMRC
Julie Palmer, BTG Regional Managing Partner (South West) and also one of the joint administrators of AFC Bournemouth, echoed the key learning points in the Torquay case: with a high profile sports club appointment comes intense media attention, unprecedented complexities, and unavoidable conflict, but on the other side is a club saved and community spirit restored, which is unlike most other sectors.
