Re: 2010/2011 English Premier League
ThePercies said:
If you read the rules, Liverpool will NOT be docked 9 points as they don't fit the criteria. This is just a case of the papers not doing their research properly.
RBS can place them in administration if the debt is not paid. It is at RBS's discrection.
New York Tiger said:
Alright - why won't liverpool be docked 9 points if they placed in Administration? Those are the rules I thought.
They are the rules. Although it is likely both RBS and PL will squib it because it is Liverpool and will cause massive negative public sentiment.
http://news.bbc.co.uk/sport1/hi/football/teams/l/liverpool/9074311.stm
Should Kop Holdings be placed in administration, the Premier League board, which comprises chief executive Richard Scudamore, chairman Sir Dave Richards and secretary Mike Foster, would then decide whether to dock points.
Premier League rules state the points penalty can be applied if a parent company insolvency is caused by the club's management.
RBS will have the choice to waive their demand for repayment until the legal dispute is finalised, or call in the debt and place the parent company into administration.
Portsmouth became the first Premier League club to enter administration on 26 February and automatically received a nine-point reduction, condemning them to relegation.
In a similar case, West Ham avoided a penalty when their holding company went into administration in 2009 - that is because the east London club was just one of several interests in the portfolio of Icelandic bank Straumur.
However, also in 2009, Southampton were docked 10 points by the Football League after their parent company Southampton Leisure Holdings went into administration, as a League investigation found they were "inextricably linked as one economic entity". That was a decision taken by the Football League rather than the Premier League.
With the Premier League meeting the owners and directors of NESV in the last couple of weeks, league bosses have confirmed that John W Henry and his board have passed recently changed the 'new owners' and directors' test.