Barry Izbak
U.T.A.
Hiney said:Ian
Thank you for your further communication, the content of which is noted.
Patricia
Yeah right
Thanks
I don't know why she couldn't be arsed to reply properly to you, but poor old Pat must have had a couple of drinks to come up with this back to me this afternoon
Dear Barry
Thank you for your further communication.
Whilst appreciating your concern, it might be helpful to clarify The Football League's role in relation to its clubs.
The vast majority of football clubs (and all Football League clubs) are companies incorporated under English Law. The Football League has no jurisdiction over those companies (or their owners) save where it relates to the participation in our competitions.
Put simply, provided the owner operates within the law of the land he/she is free to operate the business as he/she sees fit. If he/she operates outside the law of the land then that is a matter for the legal authorities of the country in question. The owner is free to use the assets of that business as he/she sees fit, provided any actions are legal.
What The League provides is a national membership organisation and administers competitions within which the member clubs participate and it is these Clubs that make up the ‘membership’ of The League. They vote in Rules and Regulations which The League then administers.
We do not “run” the member clubs. That is done by the owners and directors of those member clubs. For example, we have no legal jurisdiction to dictate who can or cannot own a business, but The League does have the ability to determine whether that company should be able to participate in our competitions.
We also have rules and regulation in relation to membership and participation in our competitions with relevance to directors. In particular the Fit and Proper Person Test disqualifies people from operating as directors of a club if they fall into any of the following categories:
Anyone subject to a ban from a Sports Governing Body relating to the administration of that sport.
Anyone with an unspent conviction relating to fraud or dishonesty.
Anyone that is disqualified from acting as a director of a UK registered company.
Anyone currently subject to a Bankruptcy Order.
Anyone who has been a Director of a club that has been in administration twice during a five-year period or a Director of two different clubs that have each gone into administration in a five-year period.
The Fit and Proper Persons Test can only operate within the constraints of the law of the land and cannot be used to cover any grievance against an owner or director of a club. Its relevance is limited to legal issues.
Provided League Rules and Regulations are observed that private company is entitled to be a League member and participate in our competitions.
When a private company suffers an insolvency event or encounters financial problems it falls under the remit of the insolvency law that operates in this country. The League is there to offer advice in relation to our policies and regulations. We are not there to “bail clubs out” or take over the running of the clubs. That is a matter for the owners or, should they be appointed by the court, the administrators. The League is a not-for-profit organisation that generates revenue and distributes it to the member clubs.
The League operates an insolvency policy, part of which includes the Sporting Sanctions Regulation. This Regulation sees clubs that suffer an insolvency event deducted 10 points. This Regulation was voted into place by our member clubs in September 2003 and came into force on May 10, 2004.
This sanction seeks to restore the competitive balance that would otherwise be distorted by the use of insolvency proceedings, in the first instance to prevent creditors of the club being able to recover sums lawfully due to them and, thereafter (in the majority of cases) seeking to settle the amounts due to those creditors other than by way of payment in full.
The sanction is designed to have a deterrent effect and to make Directors more accountable to supporters for the way they have run their clubs. In time, this should foster a more sustainable approach to managing football clubs and, hopefully, reduce the number of clubs needing to go into administration.
The ten-point deduction itself is not intended as a punishment but rather as an attempt to balance the competitive advantage clubs receive by ridding themselves of debt.
An appeal against the sanction is allowed under League Regulations where insolvency events have occurred due to circumstances which are deemed to be unforeseeable and unavoidable.
Other than assuring you The League does not wish to lose any club, there is nothing further I can add.
Patricia
No kisses tho
