Reading to be deducted up to 9 points.

Steer said:
We are shooting up the table without even winning any games. Warnock has the golden touch.
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What odds on Neil Bauser being player of the season by being one of only 6 CEOs to keep the club out of administration, thus allowing us to reach the play offs? :ROFLMAO:
 
BoroMart said:
Going into administration IS breaking the EFL rules.

12. Sporting Sanctions

Introduction

The following Regulation provides for how sporting sanctions will be applied to Clubs when the Club, or any Group Undertaking, becomes subject to or suffers an Insolvency Event, and also makes provision for an appeals mechanism, but only on the grounds of ‘Force Majeure’.

By way of clarification the following are identified as circumstances which it is intended would be embraced under the category of ‘Force Majeure’. It is intended that this appeals process should be limited to circumstances which are deemed unforeseeable and unavoidable. In all these examples, each case would have to be considered on its own merits:

Club Income: In the event that a club suffers material adverse effects upon the loss of anticipated income streams which mean that it is unable to meet its liabilities as and when they fall due. This could only be grounds for appeal, however, if the loss occurs during the currency of a binding agreement (i.e. not upon expiry).

Default by another Club: In circumstances where an insolvency event is caused by the default of another football club. Once again, however, for this to constitute legitimate grounds for appeal, the outstanding payments must be significant enough to have had a material and adverse effect upon the Club.

12.1 If any Club becomes subject to or suffers an Insolvency Event, that Club shall be deducted 12 points.

EFL Official Website - Section 3 - The League

www.efl.com www.efl.com

Is it to prevent gaining unfair financial advantage, possibly, depends on the circumstances. If a club falls into administration because over a prolonged period of time their outgoings are bigger than their incoming and beyond any available credit, then they have overspent and had access to playing staff that they can't afford.
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So what you are saying is, it is in the rules that a team can go into administration and will be docked 12 points.
 
newusername said:
So what you are saying is, it is in the rules that a team can go into administration and will be docked 12 points.
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I'm saying it is a breach of the rules, and the sanctions for that breach are clearly defined. You don't get sanctioned for staying within rules ;)
 
To my knowledge mfc are in debt , can we go voluntarily into administration if say we look like we missing out on playoffs but be fairly safe with 12pts deducted. and pay off our creditors at a agreed but reduced rate?
 
UTB70 said:
To my knowledge mfc are in debt , can we go voluntarily into administration if say we look like we missing out on playoffs but be fairly safe with 12pts deducted. and pay off our creditors at a agreed but reduced rate?
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No the 12 points would be carried over to next season and we would get a transfer ban. We would also carry our debts into the next 2 FFP calculations so could end up worse.

All clubs are in debt pretty much. It's managing the debt over a 3 year window to be less than 39mill. We did that by selling players, finding cheap replacements, reducing our wages by more than half in 4 years and basically taking our medicine after the Monk failures. Our finances will be even better in 2 years when Britt and Fletchers wages and amortised transfer fees no longer figure on our FFP calculations.

E.g.
Our accounts in 2022 will have 3 seasons:
21-22 no Britt
20-21 Britt (3.75m transfer fee + 2mill wages)
19-20 Britt (3.75m transfer fee + 2mill wages)
- Total 11.5m of Britt still on the FFP calculations!

That's just Britt
 
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