BusinessBusiness RecoveryFootball league adopts new administration rules

Football league adopts new administration rules

Clubs that go into administration will be docked 10 points from next season, the Football League has finally decided.

Link: Football finance crisis strikes Oldham

This decision was taken yesterday at an emergency meeting in Oxford where chairmen of Football League clubs voted to ratify the controversial proposal.

Its primary aim is to prevent a situation as happened at Leicester City FC from repeating itself.

Leicester City went into administration last year and used this process to wipe out all its debts before winning promotion to the Premier League without losing any of its top players.

League chairman Sir Brian Mawhinney announced the decision, saying: ‘This is necessary because the Football League is the guardian of competitiveness in our divisions and we can’t have clubs who go into administration gaining an advantage.

‘It is a fundamentally different approach and there was a healthy debate – but I pay tribute to the clubs for attaching that significance to it.’

Clubs hit with the points deduction will have the right to appeal to an independent body.

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