Liverpool could face points deduction

cymatty · 8 Oct 2010 at 12:45

Liverpool are likely to face a nine-point deduction if its parent company Kop Holdings goes into administration next week, BBC Sport understands.

League rules say a points deduction can be used if a parent company insolvency is caused by the club's management.

Sources suggest owners Tom Hicks and George Gillett would struggle to argue that the running of the football club had not affected the holding company.

Liverpool could enter administration if a sale is not agreed by 15 October.
More to follow.

http://news.bbc.co.uk/sport1/hi/football/teams/l/liverpool/9074311.stm

Ouch

leaskovski · 8 Oct 2010 at 12:46

Whoops.... they aren't having it good at the moment!

Steedie · 8 Oct 2010 at 12:49

Unfortunately, this won't happen, and they'll end up getting the buy out in time or some sort of loophole

Alpherah · 8 Oct 2010 at 12:57

The PL already said last week that pool wont get a 9 point deduction because the club can suport itself or something.

KidCanary · 8 Oct 2010 at 15:21

Be great if it did happen though.

Tombstone · 8 Oct 2010 at 15:24

The Premier League have confirmed that Liverpool’s situation, if the owners go in to administration, will be more like West Ham’s than Portsmouth’s off field events.

West Ham, like Liverpool were a solvent organisation when their owners went in to administration – avoiding the penalty, whereas Portsmouth were insolvent and handed a 9 point penalty.

The clarification from the Premier League says:

“The aim of the regulations is primarily to capture clubs who have gone into insolvency. This is manifestly not the case with Liverpool Football Club.”

Saviola · 8 Oct 2010 at 15:25

Read the rules yourself and don't believe the media all the time

Section 62 (regarding Insolvency Events) would suggest Liverpool have a very good case for NOT being docked points and this I believe is what the Premier League will find.

But I am no Lawyer

antijoke · 8 Oct 2010 at 15:26

Alpherah said:
The PL already said last week that pool wont get a 9 point deduction because the club can suport itself or something.

Agreed. It was even reported on the BBC. :rolleyes:

Morba · 8 Oct 2010 at 15:56

anticonscience said:
Agreed. It was even reported on the BBC.

that was the stupid thing. During the day they reported that it would not be a deduction, yet on the evening news they continued to say that they could face a 9 point penalty.

atpbx · 9 Oct 2010 at 11:00

Its more like a southhamton case than a West Ham case I would have thought.

Tombstone · 9 Oct 2010 at 11:05

atpbx said:
Its more like a southhamton case than a West Ham case I would have thought.

Southampton were docked points by the league rather than the premier league, slightly different rules when it comes to administration. (hence why one is a 10pt reduction and one is a 9pt reduction amongst other things) , thankfully we are in the premier league and they have categorically stated that under their rules there will be no point reduction.

atpbx · 9 Oct 2010 at 13:02

http://www.sportinglife.com/footbal...STORY_NAME=soccer/10/10/09/manual_121221.html

From the horses mouth.

Seems as ever with these things clinging on to straws doesnt change what actually happens.

The holding company only has the club as an asset, just like the southampton case, if the bank calls the loan in then the club will be asked to pay the money, as obviously they dont have £230 million pounds, administration and asset stripping will commence should Hicks and Gillett succeed in blocking the sale and dont have the funds to pay the loan back themselves.

aidan444 · 9 Oct 2010 at 13:06

Broughton is using it as a scare tactic to try and get the court to push up the case to monday apparently.

atpbx · 9 Oct 2010 at 13:10

Yes of course he is, just like Leeds were never going to go bust and get relegated.

Pigeon_Killer · 9 Oct 2010 at 13:11

aidan444 said:
Broughton is using it as a scare tactic to try and get the court to push up the case to monday apparently.

Pretty much destroys H&G's argument that the proposed sale is not in the best interests of the club regardless of when the case goes to court.

Jokester · 9 Oct 2010 at 13:20

Rule 62 of the Premier League rules certainly doesn't protect Liverpool from a points deduction if that's the one that's being quoted by the PL.

atpbx · 9 Oct 2010 at 13:34

Jokester said:
Rule 62 of the Premier League rules certainly doesn't protect Liverpool from a points deduction if that's the one that's being quoted by the PL.

I'm looking at rule 62 now, and I cant see how it can be construed as offering any protection from points deduction either.

Jokester · 9 Oct 2010 at 13:47

atpbx said:
I'm looking at rule 62 now, and I cant see how it can be construed as offering any protection from points deduction either.

I don't think the PL will deduct them points, but it won't be because the rules prohibit it, but that Liverpool are too big a club for the PL to risk going down.

sammo62 · 9 Oct 2010 at 14:41

BBC pulled that article by the way because they realised they had no source and it directly went against what the Premier League had already said. I think it would be very unlikely for Liverpool to get a 9 point penalty while the club is technically solvent. Mainly because it is against the league's interest for Liverpool to be relegated in terms of losing one of the big brands that help sell TV rights abroad.

Jokester · 9 Oct 2010 at 14:53

In fact, having had a proper read through now, the rules clearly state that even if it's the parent company that goes bust the rules apply:-

Events of Insolvency
50. Subject to Rule C.58, the Board shall have power to suspend a Club by giving to it notice in writing to that effect if it or its Parent Undertaking suffers an Event of Insolvency, that is to say:

But rule 58 then gives the PL an escape clause that essentially says the PL can decide not to punish them if it's not in the best interests of the game.

So essentially it'll come down to whether the PL want to risk demoting a big club like Liverpool.