No fixed penalty for newco clubs - SPL

Wed, 30 May 15:19:52 2012

The Scottish Premier League have backed off from imposing a fixed penalty on Rangers if the Ibrox club remain in the SPL as a newco.

All 12 SPL clubs met at Hampden to consider a number of different financial fair play proposals, one of which pertains directly to Charles Green's Rangers, who are trying to come out of administration via a Company Voluntary Agreement (CVA) but who will use the newco route if that is unsuccessful.

A proposal would have seen clubs who undergo an "insolvency transfer" docked 10 points for two seasons and lose 75% of their income for three years. However, after a resolution was passed which means the decision on admitting a newco club, formerly taken by the SPL board, would be made by all clubs, the SPL's Neil Doncaster stated the fixed penalty was "not appropriate."

The SPL chief executive said: "With the change in rules meaning that any application for a share transfer would now be considered by the clubs in a general meeting rather than the board, a fixed penalty is not appropriate.

"The clubs have decided that, should they be in a situation in future where they were considering an application for the transfer of share to a newco, it would be on the basis that the members could impose a sanction proportionate to the individual circumstances.

"So the fixed penalties were deemed obsolete and therefore withdrawn. But I think it is important to stress that there is no newco application for us (to consider). There is a CVA proposal which have gone to creditors and on that basis we are not anticipating a newco proposal to come forward."

Doncaster, who confirmed Green was present, claims the most significant points to come out of the meeting, were the "very heavy sanctions for clubs going into administration in the future".

Clubs who enter administration will lose at least 10 points - cut from the original proposal of 15 - or a third of their previous season's tally, whichever is greater. Clubs will also be obliged to pay their players and Her Majesty's Revenue and Customs on time and be subject to sanctions if they fail to do so.

It was a day of some clarity as a vote on the proposals had previously been adjourned twice.

However, and significantly, the resolution to amend SPL voting rules to an 9-3 in all cases was adjourned to the SPL's Annual General Meeting on 16 July. Currently there is an 11-1 majority needed for major reform which has traditionally favoured the Old Firm clubs.

 

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