Is administration still the easy way out for clubs?

[nicko31]

Isn't it about time the football league looks again at the penalty for going into administration? The 10 point deduction is a complete joke. Seems its all too easy to get a new owner, form a new holding company and carry on as normal.
Surely a relegation to league 2 would be the most appropriate punishment. Soton, Palace, Pompey...all taking the piss out of the system.........

 

[Surport Local Team]

seems ok if u r in league 2

 

[Surport Local Team]

i get ur point though, a two league drop would be good.

 

[Tony Meolas Loan Spell]

Indeed and perhaps a transfer embargo of a year as well. Unless of course the club does the decent thing and pay the creditors in full like Stains did.

 

[nicko31]

Perhaps 20 pts (if in league 2) or relegation to league 2 would do..

 

[Seagull over Canaryland]

A bit rich hearing a Palace fan giving it large on 606 tonight about Everton's financial situation effectively meaning that they are 'insolvent'.

To be fair he acknowledged that Palace could have gone out of business due to financial problems (even we would have some understanding of that sort of pain, albeit in different circumstances to CPFC). But from my understanding Everton can't buy players because their bank requires them to pay down existing finance first. Seems right to me. Might not please the Toffees but should make a football club meet its current debts rather than let them rack up even more.

Just found it ironic that a Palace fan of all people should try to offer financial advice?

 

[Huple]

start again in whatever County league you come from.... see how many clubs go into admin after that..... its bloomin cheating i tell you...

 

[Benzhiyi]

We (Palace) were forced into administration by a third party second time around, and Jordan lost a massive chunk of his own fortune as a result. (For which he now resents the club, new owners, etc.)

There was no deliberate 'cheating the system', although I accept he was naive to mismanage our finances to the point that someone outside the club could force us into admin.

 

[bhaexpress]

We (Palace) were forced into administration by a third party second time around, and Jordan lost a massive chunk of his own fortune as a result. (For which he now resents the club, new owners, etc.)

There was no deliberate 'cheating the system', although I accept he was naive to mismanage our finances to the point that someone outside the club could force us into admin.

Yes wasn't he naive to over pay players to keep Palace in a false league position. It might come as a shock to you but most creditors like to get paid what they're owed. This is something that Palace failed to comprehend twice.

 

[beorhthelm]

There was no deliberate 'cheating the system', ...

as above, Jordon spent more than was available to keep the club in championship/push for promotion. to be fair, he does seem to have lost alot of his own money in the process, and the real villian was Noades who proper f***ed the club when selling the ground. thats what there needs to be some rules around, the ownership of the most important club asset, its ground.

Everton is solvent as long as the bank is happy. many businesses operate with a large debt. i think for all their wealth, ManU and Real Madrid (to name just two) are perpetually in debt of hundreds of millions. i recall there are only a handfull of clubs with no debt.

Perhaps 20 pts (if in league 2) or relegation to league 2 would do..

the argument goes that if the punishment is too severe, too large a point deduction, it would predetermine the outcome of the season. a team with -20 points might not bother to put out anything more than a youth team, so skewing the results for others. a team with -10 is still competitive. same with automatic relegation, how does that influence their play, if you have played them twice when it happens and another team only once/none, it could affect other clubs season too much.

 

[Seagull on the wing]

Think an embargo on all incoming transfers would help...they can sell players to ease the debt but not buy new players.

 

[nicko31]

Take Soton, sold a player for £12m. A bit late for the car valet company and the caterer they sent bust a couple of years back. Its just all so wrong, in my opinion they really got away with murder..

 

[Beach Hut]

Think an embargo on all incoming transfers would help...they can sell players to ease the debt but not buy new players.

Agree with that sell but not buy or acquire under freebies

 

[JBizzle]

Indeed and perhaps a transfer embargo of a year as well. Unless of course the club does the decent thing and pay the creditors in full like Stains did.

I agree with this. I've always thought that financial penalties are most hard-hitting. Personally, I would go with a one year transfer embargo (excluding frees) and a 3 year wage cap to force the club to live within its means based on turnover and outgoinings.

 

[El Presidente]

Given that is is 35 years since the Albion made a profit, surely we are just as hypocritical as those having a pop at Palace?

If you think we haven't skirted with administration too then you are living in La-La land. It is only through the largesse of TB that we have a pot to piss in.

 

[JBizzle]

Given that is is 35 years since the Albion made a profit, surely we are just as hypocritical as those having a pop at Palace?

If you think we haven't skirted with administration too then you are living in La-La land. It is only through the largesse of TB that we have a pot to piss in.

But there's a difference between skirting administration and actually being in it. Sure, we've been in deep cr*p in the past financially but for various reasons it hasn't happened, Palace have been in administration TWICE in ten years...

 

[Biscuit]

Perhaps a transfer embargo, 10 point deduction and restrictions on promotion for two seasons. Meaning any club getting relegated could face relegation from the league below but are not allowed to gain promotion. If said team finished in the top six they'd be stripped of their play-off place and the next eligible team in the league would take it.

I think the two year promotion embargo would work quite well as a lot of the teams that over spend do so chasing 'quick' successes on the field - this would delay any on-field promotions up the league pyramid. It'd also mean players who look to join clubs on unsubstantial wages might be put off.

 

[trueblue]

Automatically relegated two divisions would be my choice.

 

[Gary Leeds]

relegation of 2 divisions but should you finish in a relegation position at the end of the season (im looking at you Portsmouth) then you drop 3 divisions. That then gives the incentive to keep on playing your best team until you know you are safe.

Of course, under league rules Portsmouth should have been dumped in the Conference as the rules state that the Football League will not accept any club into the league who are currently in admin which at the time Portsmouth were.

 

[Simster]

But there's a difference between skirting administration and actually being in it. Sure, we've been in deep cr*p in the past financially but for various reasons it hasn't happened, Palace have been in administration TWICE in ten years...

But nevertheless, El Pres's point still stands. Ultimately, who is to say they'd have ended up in administration if the on-field punishment has been more severe? I wonder whether it would happen anything like as often as it does if the punishment was a two division relegation.

It all boils down to one thing - football really ought to be able to look after itself given the amount of money in the game. Unfortunately, the gaps between different divisions is now so large that clubs find themselves paying obscene amounts of money for players that will keep them as high up as possible. The only solution is to share the wealth more evenly, and a recognition from clubs at the top that clubs lower down are valuable enough to the professional game at large that their existence shouldn't be unnecessarily risked.