Logo
Print this page
Save to disk
Go back

Football: Ten point penalty is unfair say FDs

09 Oct 2003, Paul Grant, AccountancyAge

http://www.accountancyage.com/aa/news/1789245/football-ten-penalty-unfair-fds

Link: Oldham FC gets 11th-hour reprieve

The Nationwide League's decision to deduct 10 points from football clubs that go into administration is wrong, according to UK financial directors.

This week's Accountancy Age/Reed Accountancy Big Question found that 55% of those asked felt it was unfair to punish clubs to such an extent for their financial problems. However 28% felt the move would prevent similar controversies to last season when Leicester City went into administration but immediately gained promotion to the Premiership.

'It's hardly going to help a club get out of a mess if they are forced to drop points,' said one financial director.

'This is a knee-jerk reaction to Leicester City's situation last season,' said Aidan Geraghty of Fishpools.

Others however were far less sympathetic. 'Allowing a club to go into administration gives a club an unfair financial advantage over other clubs who are struggling to work within financial constraints,' argued Mike Paull at Actel. 'I would question whether 10 points is sufficient.'

© Incisive Media Investments Limited 2012, Published by Incisive Financial Publishing Limited, Haymarket House, 28-29 Haymarket, London SW1Y 4RX, are companies registered in England and Wales with company registration numbers 04252091 & 04252093