BusinessBusiness RecoveryLuton Town faced with relegation

Luton Town faced with relegation

The severity of the points deduction on Luton Town leaves the club penniless and without a hope of remaining in the league

Luton Town looks set to go out of business after the Football League ruled
the club must start next season on minus-30 points.

The club’s failure to complete an insolvency agreement could result in the
team’s relegation from the Football League for the first time in their history
after the league levied a further 20-point penalty in addition to the FA’s
previous 10-point deduction for irregularities in the club’s transfer dealings.

The latest penalty came in response to Luton’s failure to complete an
agreement to the satisfaction of HM Revenue & Customs, which opposed the
LTFC2020 consortium’s offer to pay unsecured creditors 16p in the pound.

‘We’re absolutely stunned by what they’ve done to us. It’s staggering that
they want us to start off with minus-30 points. It’s a joke. They’re trying to
kill the club,’ a source at the club, who did not wish to be named, said,
the
Times reported.

The Coca-Cola League Two club has faced three insolvencies in the past 10
years, each time wiping away debts only to go on to live beyond their means.
‘The board’s primary responsibility is to protect the integrity of their
competitions,” said Lord Brian Mawhinney, the league’s chairman. “This often
means making difficult decisions which require balancing the interests of fans,
the club’s creditors and the other teams in the league,’
The
Guardian reported
.

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