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Scottish football abandons plans to automatically relegate clubs in admin


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The Scottish Professional Football League has abandoned plans to punish clubs who enter administration with automatic demotion.

 

When the proposal was put forward by the president of a lower league club at an SPFL board meeting last October there was initial enthusiasm, with the feeling that such a severe sanction would act as a deterrent for any financially troubled club who viewed administration as a way to wipe out debts and remove employees from their wage bill.

 

However, following several months of negotiations with all 42 member clubs, it has been decided not to place that punishment on the statute books.

 

While support remained for the move, the majority opinion was that there were issues attached to it which could not be immediately resolved.

 

“There was a wide consultation process and we spent time looking at it but, ultimately, the prevailing opinion was that there were complications arising from it which raised other questions,” said a Hampden source.

 

 

 

“For example, if a member goes into administration while playing in League Two then where would we put them?

 

“Also, if a club wins promotion and then suffers an insolvency event, do we simply refuse to promote them or do we relegate them from the division which they have just been playing in?

 

“Because of that it was decided to persevere with the current system, which sees clubs handed a 15-point penalty for entering administration and 25 points if it happens again within a five-year period.”

 

It has also been agreed that, in future, the SPFL Board will have the sole responsibility for adjudication regarding clubs who might face liquidation.

 

“It will be down to the board to determine any conditions for a transfer of membership if a club is liquidated and attempts to go down the newco route,” said the source.

 

“That may include any new owners posting a bond for security.”

 

Hearts, bottom of the Premiership, are optimistic that they will shortly be in a position to exit administration.

 

Dave King, a former director of Rangers — who suffered both administration and liquidation in 2012 — claimed on Monday that the League One leaders will run out of money next month.

 

 

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So because of two very minor details it's all been binned? ??? The two "reasons" for it being shelved are pathetic and not overly complicated issues to discuss and make arrangements for.

 

From this news I will choose to take this: The Rangers must be fucked and on their way to administration. At least now they don't have to demote them.  ::)

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So because of two very minor details it's all been binned? ??? The two "reasons" for it being shelved are pathetic and not overly complicated issues to discuss and make arrangements for.

 

From this news I will choose to take this: The Rangers must be fucked and on their way to administration. At least now they don't have to demote them::)

 

That was my take on it.

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