English Football - Clubs Entering Administration

When a football club finds itself in financial difficulty there is a way it can avoid liquidation and continue to trade as a business. It is called entering administration and is sometimes referred to as going into admin. A team of administrators is appointed to run the club. This is embarrassing for the chairman and directors as it gives the impression they have run the club in a bad way. In most cases, that is exactly what has happened.

Some argue the penalties for an English football club entering administration are not harsh enough. They point to recent examples of teams pleading poverty then quickly rising from the ashes. These clubs were struggling with mounting debts then in a short space of time were a force to be reckoned with on and off the pitch. One club ran up massive debt courtesy of their new stadium while another went out and spent over £1 million on a player shortly after coming out of administration. Fellow teams have every right to question these ethics.

The aforementioned examples do not go down well with the supporters of other football clubs. They see it as a way some clubs manipulate the football rules and avoid meeting their financial responsibilities. In short, the accusation levelled is one of cheating. When a Premiership club is struggling, it is highly embarrassing for the suits at the Premier League. After all, the English Premiership is supposed to be the land of milk and honey. However, if you spend money you do not have on transfer fees and wages, it will always end in tears.

There is an argument for replacing the 10 point deduction with an automatic relegation. Some chairmen have entered administration at the halfway point in the season. For example, when it became clear their side would not be relegated even with a point deduction. An automatic demotion would eliminate this tactical approach to administration. It would also give the club a harsher penalty and make the owner think twice about following such a path.

When it comes to English football clubs entering administration, not everyone is full of sympathy. Granted, there are many examples of clubs who have fallen on hard times through no fault of their own. However, these are usually lower league clubs a long way from the top flight. The vast majority of financially challenged clubs have gone into admin during the years following relegation from the Premiership. There is no shortage of instances where admin has wiped away debt. Ironically, this was induced by poor leadership and questionable business decisions at these clubs.

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