BusinessBusiness RecoveryPremiership rejects administration penalty

Premiership rejects administration penalty

The Premiership has rejected proposals that would have seen its clubs face similar penalties to Nationwide League sides if they fall into administration.

Link: Football: Ten point penalty is unfair say FDs

Although Premiership sides have not suffered from the same financial problems as those in lower divisions, which were hit hard by the collapse of ITV Digital, teams like Leeds United have been struggling with the growing cost of acquiring top quality players and paying their wages.

The proposals for an automatic system of points reduction was rejected but there is still support for some sort of sporting penalty for those clubs that choose the administration route.

One option currently under consideration, according to the Independent on Sunday, would see the formation of a panel consisting of insolvency experts and representatives of the Premier League and the Football Association to look at each case on merit.

Football League clubs that go into administration will be deducted 10 points.

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