BusinessBusiness RecoveryPremiership club face losing points

Premiership club face losing points

Cash-strapped football clubs in the Premier League face losing points for going into administration after the league's board said it was to discuss the issue over the summer.

Link: Leeds manager to be liquidated

The Premiership confirmed its intentions, saying: ‘The issue of penalties for administration will be up for discussion over the course of the summer but we have not made any decisions yet.’

The move, which follows the adoption of point penalties in the Football League two weeks ago, will increase the problems faced by Premiership clubs, creating a ‘dangerous game of double jeopardy,’ according to insolvency experts.

Matt Dunham, partner at RSM Robson Rhodes, said: ‘It could make the end of the season a joke. If people know the club is going to be relegated at the end of the season, it will be harder to get fans to go to games, it will be more difficult to raise finances and it will be harder to motivate the players.’

Leeds Utd could be the first club in danger of being affected. Its weak finances mean it is at risk of going into administration. Last week it appointed Neil Robson, director of corporate finance at Ernst & Young, as interim chief financial officer.

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