Sports firm wound up over non-payment of £421,000 order

The High Court has officially wound up a former solicitor’s firm headed by a high-profile sports lawyer over outstanding six-figure debts. Following a hearing in Manchester before District Judge Obodai this week, it was ordered that IPS Law be wound up under the provisions of the Insolvency Act 1986 and a liquidator appointed.

IPS Law held itself out as a niche firm with clients including Cristiano Ronaldo and Tyson Fury, but it was shut down by the Solicitors Regulation Authority in November on suspicion of dishonesty on the part of manager and solicitor Christopher Farnell. The firm, based in Altrincham, said the intervention was not justified and it planned to appeal.

The winding up petition had been presented by a company called Global Sports Data and Technology Limited, a consultancy headed by technologist Jason Dunlop and  football manager Russell Slade.

Global Sports had been engaged in court proceedings with IPS Law last year over a failed venture to run data privacy claims on behalf of professional sports people. Senior Costs Judge Rowley ruled that IPS Law and its senior partner Farnell had not been entitled to raise invoices worth around £370,000 as there was not a solicitor-client relationship in which an implied retainer existed.

According to a court order seen by the Gazette from last October, Rowley ordered IPS Law to pay Global Sports £321,000 within 10 days. IPS Law was also ordered to pay Global Sports’ costs of £100,000 within the same timescale and its application for permission to appeal was dismissed. 

Global Sports petitioned the court for a winding up order in December on the basis that IPS Law did not pay the money, leading to the hearing this week.

Court papers show that Farnell requested an adjournment of the hearing on medical grounds. District Judge Obodai determined that the evidence provided was not sufficient for an adjournment on medical grounds, and the hearing went ahead with Farnell not in attendance or represented.

The court made the winding up order and further ordered that the petitioner’s costs be paid out of the assets of IPS Law. The most recent accounts filed by the firm cover the year to March 2024 and show assets of £1.76 million, including £162,000 in cash reserves.

Following the SRA intervention last year, Farnell said the regulator’s actions had been ‘unnecessary and premature’, and he pointed out IPS Law LLP had a previously unblemished record and excellent regulatory history.

He added: ‘We have, and will continue to, co-operate fully with the SRA through its enquiries. IPS Law would like to thank their clients and colleagues for their support.’