Issue Football’s administration punishments need to change to avoid uncertain futures

As told by Michael Wood

Rotherham United are looking at coming out of administration and – as with Luton Town and Bournemouth – they face the same fifteen point penalty that Leeds United suffered last season because for whatever reason the numbers are not adding up and they are not going to be able to exit with agreement from the creditors as City did twice.

I’ve said all I want to say about Leeds United and the way they do business but I’m forced to note that the Football League’s punishments – well meaning as they are – seem to hit the clubs hardest that can ill afford them. Whatever went on at Elland Road the position in the league suggests that the club were able to take the fifteen point deduction in their stride. As Rotherham line up at The Don Valley Stadium with – we understand – a picked over squad then it can hardly be said that they are able to do the same.

Such is the problem with the punishment. Had City been hit with ten and fifteen point deductions as we would have been were those rules in place when we were in administration then the club could have ill afforded the relegations that would have come more quickly. Leicester City – on the other hand – used a CVA to walk away from massive debt and would have had no problem in taking that penalty and still being promoted back to the Premiership.

Some sanction has to be taken to avoid the Leicester City and Leeds United situation of walking away from debt but that sanction has become a harbinger of doom for those who can ill afford it such as Rotherham United.

A solution needs to be found. Administration is a result of a club trying to tilt the balance of a season towards them. We saw this in the Premiership when Geoffrey Richmond attempted to lash out cash and keep City in the top division risking all to do it. Over ambitious chairmen will always gamble the future of the club against short term success and football needs rules to stop this and protect those who have a long term view of the club – the fans.

Rather than docking points and having clubs begin seasons playing catch up the Football League should look at a system that says to clubs who want the protection from creditors that administration provides that they will offer them protection from relegation. Rather than losing ten points a club that goes into administration should not be able to be relegated for 16 months and not allowed to be promoted for a further year.

That is a year of insulation for clubs who hit financial difficulties for them to rebuild themselves without the fear that when they emerge from the blanket of debt they have cascaded down the leagues but the pay off – the way to stop a Leicester or a Leeds – is that they have to agree that they will not be promoted for two years. The period begins a month after administration is entered – that would stop clubs abusing the system to stop relegations – and would mean that should a team finish 24th in the league then the teams 19th to 23rd would be relegated.

Time then to regroup and rebuild a club like Rotherham getting the gates and the games without giving undue advantage but most importantly continuing football which is in danger of dying in Rotherham as – like City did – club’s stumble punch drunk from punishment into uncertain futures.