Just read club to be taken over by Wigan Warriors Rugby League. Ian Lenagan is Chairman, also former Chair of EFL. What do we reckon this means for the chances of a points deduction??
Automatic for entering relegation , however these are the EFL rules so owt could happen , and it probably will .
Dont think it will change anything. Think now they've stated Wigan will receive a points deduction they're unlikely to go back on that decision.
It is an automatic penalty for going into administration, but they are appealing it under force majeure. Them being bought by anyone shouldn't affect it. They've only tabled a bid as far as I can see, by the way...
Even if that happens, it doesn't alter the fact they've entered administration which automatically carries a 12 points deduction (either in the current or following season). However, this is the EFL we're talking about, who are as tough on financial irregularities in their organisation as a pink blancmange!
Agree, but it does look like they'll be successful and have Council backing. They have appealed claiming COVID 19 as a force majeure,. That should really fail. Other clubs facing the same situation haven't suddenly become insolvent (by that I mean the legal definition of not being able to pay debts as and when they are due). They were close to insolvency before COVID 19 and it would set a precedent. You could see virtually all the championship going into administration if it was a free hit
As everyone as said, Wigan were spending way beyond their means before COVID, putting clubs like Barnsley at a serious disadvantage. Wigan's definition of "healthy finances" seems to rely on someone stumping up regular million quid subsidies so they can continue to pay over the odds transfer fees and wages.
Why spend all that money just before going into administration if COVID 19 was the reason they had money issues. The had been in lockdown for months yet still went on a spending spree. Seems more likely that the money from their owner dried up.
A lot of championship clubs are only going concerns based on the support of a parent company/wealthy benefactor. Our opponents last week, Stoke, are not a going concern without the support of their parent company and ultimately Bet365. The last published accounts make that distinction. Stoke are by no means unique (although the £141m debt is quite eye watering), insolvency for many Championship clubs would occur if the support of their wealthy backer were to be withdrawn.
