Date: 1st April 2009 at 11:18am
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The Football League have confirmed to Southampton that they will not face a 10-point deduction should their parent company go into administration, rather than the club itself.

Southampton’s local paper, The Daily Echo, contacted the Football League this morning to confirm whether or not the club would be hit by a points penalty.

And a spokesman confirmed that the club would not be deducted points if SLH went into administration, as is widely expected.

He said, “Let’s be very clear, if the club goes into administration the club will be deducted 10 points. But if the holding company goes into administration then they won’t be.

“The league rules are very specific, it has to be the club which goes into administration for points to be deducted.

“At the end of the day the Football League applies it’s rules and they specifically state it is the club that has to go into administration before points are deducted.”

Derby County provided the precedent which has seen Saints avoid a 10-point deduction for their parent company going into administration.

Back in October 2003, when ex-Saints boss George Burley was in charge at Pride Park, the Rams’ parent company Derby County PLC were taken into receivership by the Co-op bank with debts of around £30m.

But Derby County Football Club, a seperate organisation under the umbrella of the Derby County PLC company, were not taken into administration and had no points deduction.

Within minutes of Derby County Ltd going into receivership, a consortium took over from them and that company ceased to exist.

 

8 Replies to “Saints to avoid points deduction?”

  • This is a dangerous precedent – as many clubs may do this just to offload debts during a credit crisis – hopefully the FA won’t deduct any points from you BUT seems an odd loophole!

  • I tend to agree. My fear is that the FA will make an example of us for exploiting this loophole, although as mentioned in the article, Derby did it before and no action was taken. Bad times all round for everyone involved at Southampton at the minute.

  • Hmm you’d think so, hence my fears about Saints being made an example of should they exploit it. Time will tell, and the next week or so could prove to be very interesting.

  • I’m not sure what to make of this. It is certainly a loop hole, but is it worth getting our hopes up? If we were to stay up (without the 10 point deduction) I’m sure the FL will give us a point deduction next year. AND we certainly don’t need that!

  • Sad times for Southampton fans. After Luton and Rotherham I doubt anyone will “get away with it” loophole or not for the forseeable future.

  • We need a buyer, who cares about points or getting relegated. If we don’t have an investor, there won’t be an SFC. Come on investors, hands in wallets please!!

  • Yeah, well said. Our priority is to make sure we all have a football club to support next season. I don’t care where we are, as long as we have a team to cheer on. Come on Saints!!

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