A Points Deduction For Liverpool: Theoretically Possible, But Almost Certainly No

Ian

Ian began writing Twohundredpercent in May 2006. He lives in Brighton. He has also written for, amongst others, Pitch Invasion, FC Business Magazine, The Score, When Saturday Comes, Stand Against Modern Football and The Football Supporter. Ian was the first winner of the Socrates Award For Not Being Dead Yet at the 2010 NOPA awards for football bloggers.

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7 Responses

  1. Stu says:

    Ian,
    I might be wrong, but i thought the club cant be sold whilst these boardroom legal wranglings are going on though. Unless the club goes into administration, in which case they effectively go away. Those wranglings are going to go well over the deadline, so RBS effectively have to either extend the deadline – and with them being accountable to the taxpayer this is in the public eye on all angles they may feel thats a step to far, or most likely in my mind is an extension happens, but isnt long enough (too long an extension and the sale may fall through) and administration then becomes inevitable.

  2. Rob says:

    “Liverpool’s ownership structure is a predictably complex series of holding companies, but it is Kop Football that is the holding company that owns Liverpool FC. If the holding company is placed into administration, the Premier League will have to decide whether Liverpool Football Club is, as a wholly-owned subsiduary of Kop Football, also insolvent as a result of this decision. ”

    Rule 67 of the Premier League (sporting sanctions relating to administration) is clear, I would have thought:

    “Upon a Club or its Parent Undertaking suffering an Event of Insolvency the Board shall have the power to impose upon the Club a deduction of 9 points”

    Where Kop Holdings are the Parent Undertaking company.

    In West Ham’s case, (not withstanding that football insolvency rules have changed in the last two seasons) they escaped a deduction, because while the club’s holding company went into administration, it was wholly down to one of the other companies under the holding companies umbrella (the Straumur investment bank), and the Premier League rules only allow for an appeal if the club officials “could not reasonably have expected to have control”, which in West Ham’s case was clearcut before the decision needed making. In Liverpool’s case, it’s just as clear cut, because the repossession (because let’s be honest, that’s what it is) is soley down to the loan used to buy the club being loaded back onto the club.

    However, one angle no-one’s looked at, is that would RBS (publicly co-owned) be able to morally put Liverpool into administration, if the owe the Taxman (or indeed anyone other than Hicks and Gillett) anything?

  3. Dermot O'Dreary says:

    I’m sure the Premier League will do everything in its power to avoid punishing one of its favoured sons.

  4. Micky F says:

    Dermot hit the nail on the head. In contrast to the Football League if Liverpool did go into Administration the first thing the Premier League would be thinking would be “How do we get out of deducting points?”

    Point deductions are, of course, only to be used on the peasantry not the aristocracy.

  5. bern says:

    it seems to me that liverpool went into administration when the rbs appointed broughton to find a buyer for the club. can someone explain the difference?

  6. admin says:

    Bern,

    Administration is a legal process which involves notifying the Insolvency Service.

  1. October 8, 2010

    […] A Points Deruction For Liverpool: Theoretically Possible, But Almost Certainly No Check out the hunting unit, Philips Wouwerman “The lead story on the BBC Football website this afternoon may have given Liverpool supporters (who, it has to be said, are now getting close enough to feelings of perpetual panic to be able to warrant the soubriquet ‘long-suffering’) further palpitations. After the confirmation that a sale of the the club to John W Henry’s New England Sports Ventures had been agreed, the BBC is now reporting that the ongoing legal wrangles that have inevitably followed the confirmation of the sale agreement may yet force the club into administration and that this may mean that the club incurs a nine point deduction.” (twohundredpercent) […]

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