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.’
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children