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Points deduction not definite



The media have mostly assumed that the 9 points deduction is inevitable and have written off Pompey's chances of staying up. But is it quite so clear cut?

The relevant part of the Premier League's Handbook reads as follows: "Sporting Sanction 60. Upon a Club or its Parent Undertaking suffering an Event of Insolvency the Board shall have the power to impose upon the Club a deduction of 9 points scored or to be scored in the League competition. If the Board exercises this power it shall forthwith give written notice to the Club to that effect.

61. Subject to Rule C.62, the Club may appeal against the deduction of points by sending or delivering to the Secretary Form 2 so that he receives the same together with a deposit of 1,000 within 7 days of the date of the notice given under the provisions of Rule C.60.2 (time of the essence).

62. The only ground upon which a Club may appeal as aforesaid is that 62.1 the Event of Insolvency was caused by and resulted directly from circumstances, other than normal business risks, over which it could not reasonably be expected to have had control; and 62.2 its Officials had used all due diligence to avoid the happening of that event.

63. An appeal under the provisions of Rule C.61 shall lie to an appeal tribunal which shall hear the appeal as soon as reasonably practicable. The appeal tribunal shall be appointed by the Board and shall comprise 3 members of the Panel including: 63.1 an authorised insolvency practitioner and 63.2 a legally qualified member who shall sit as chairman of the tribunal.

64. The chairman of the appeal tribunal shall have regard to the procedures governing the proceedings of Commissions and Appeal Boards set out in Section R of these Rules but, subject as aforesaid, shall have an overriding discretion as to the manner in which the appeal is conducted."

This means that the points deduction is discretionary (not automatic) and the club have a right of appeal - albeit somewhat limited. AA has said that he intends to contest the points deduction. Possible arguments he could deploy might be:

(a) The Premier League has partly caused the insolvency by refusing to allow sales of players outside the window (even though FIFA had agreed - if that is true) or to bring forward payments to which the club is entitled;

(b) The Premier League's rule that "football creditors" have priority before HMRC (let alone local Portsmouth traders and suppliers) has directly caused HMRC to petition for a winding up order, and it is this that has precipitated going into administration. Thus, it is the PL that has caused the problem;

(c) If, as a result of the points deduction, Pompey are relegated, this will reduce the value of the club and make it more difficult to agree a CVA with creditors and make it less likely that Pompey will emerge from Administration. It might also be possible to challenge any decision legally in the Courts on the grounds that nearly half the Premier League clubs (who wholly own the Premier League) have a direct financial interest in seeing Pompey relegated (as so charmingly explained by Mr Sullivan of WHU).

Natural justice suggests that any decision should be taken by an entirely independent panel. So it is not yet all over.

I wouldn't want to encourage false hopes, as life isn't fair, and the people with the money generally win. But another great escape is not inconceivable. This makes last Saturday's result all the more important, and if we can win our home games against Hull and Wolves, then the last few weeks of the season could be interesting. I expect we shall know a little more by Tuesday evening.

Play up, Pompey.

Written by erithacus rubecula.

The views within this article are the views of the individual who wrote and submitted this piece, sometimes solely theirs. They are not necessarily shared by the Vital Pompey Site Journalists.


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Writer: pompeyrug Mail feedback, articles or suggestions

Date:Monday March 1 2010

Time: 9:32AM

Your Comments

Also - "62.2 its Officials had used all due diligence to avoid the happening of that event". Gay pulling the plug on his guaranteeing of debts precipitated the crisis.
PFCblue
basically, as i said in the forum, my theory is...
chances are that we will have this points penalty - right or wrong, altho the argument does seem to be that if funds have been 'mishandled' then technically portsmouth football club is not to blame for this, if any PROOF of this can be found that sheds a whole new light on things...
yep we have spent WELL beyond our means but have also been bringing in alot of money in transfers, TV money etc. so if any proof is found this has been 'filtered off' or whatever we have a case, right?
pompeyrug
PFCblue - but the reason he pulled the plug on his gaurenteeing of debts, was due to the global financial crisis, which was an event largely beond our controll, and - widely unpredicted
pompeycarpet
Thanks Robin for an interesting look at the rules. There is enough scope to question the automatic deduction of points and AA will have a go no doubt. But no hopes raised eh?
eastneydave
would be good if we didn't the deduction, but that means we could pull off the greatest escape ever and stay up. But if we went down, we could start again. If we stayed in the prem we would just be carrying on from this season.
PompeyFcMad
I could possibly think of a fourth reason - that witholding our TV money in January to prioritise football creditors potentially stopped us coming to an arrangement with HMRC to keep them off our back until the summer. Yes the football creditors would of had to wait longer for their cash but they'd be unlikely to push us towards liquidation and/or administration as HMRC did.
stooH
I can't see us getting away with it......However, for the benefit of the Premier Leagues integrity for the remainder of the season, it would be fairest to all other 19 clubs for us NOT to get a 9 point deduction. If we still have a fair chance of survival, be it in our own hands....then all clubs will have played PFC on an even situation. PUP Que Sera, Sera, whatever will be, will be, we're going to wembley !!!!
BarneyArmy
I can't see us getting away with it......However, for the benefit of the Premier Leagues integrity for the remainder of the season, it would be fairest to all other 19 clubs for us NOT to get a 9 point deduction. If we still have a fair chance of survival, be it in our own hands....then all clubs will have played PFC on an even situation. PUP Que Sera, Sera, whatever will be, will be, we're going to wembley !!!!
BarneyArmy
Well the Premier League have shown us no pity so far, it seems to me that anything they could have done to help they weren't going to in the hope that HMRC sent us into oblivion today. Hopefully though with our resident Administrator and his people fighting our corner we might get lucky. However I guess our chances are very slim so we'll just have to play the waiting game once more ..........
rugsmum
No chance...wel very , very , very slim chance at tops... WE are not West Ham Utd are we, more Sheffield i think..
plymouth graham
Borrow in haste - repent at leisure. If you live beyond your means then sooner or later the time comes to pay up. That time is now. You can use your parachute payments to pay those people you owe money to. That seems fair to me.
Irishimp
Oh I thinks it's definite, you could I suppose argue that the club could not anticipate the bank withdrawing the 42 million credit but you would assume that is business risk and the banks right to forclose was prescribed in the loan contract. Or we could try the usual old " we didn't know that the real owner would get done for oil AND arms smuggling" line; I'm sure they would buy it, especially now when they are launching their fiscal responsibility drive.
russellm
Oh I thinks it's definite, you could I suppose argue that the club could not anticipate the bank withdrawing the 42 million credit but you would assume that is business risk and the banks right to forclose was prescribed in the loan contract. Or we could try the usual old " we didn't know that the real owner would get done for oil AND arms smuggling" line; I'm sure they would buy it, especially now when they are launching their fiscal responsibility drive.
russellm
If memory serevs me right the points deduction rule was brought in after Leicester used administration and a way to keep hold of their best players and gain an advantage which saw them pip Pompey to promotion to the premiership. Pompeys case is very different because they sold all their stars in an attempt to avoid administration. Could anybody really look at our squad and say we've gained an advantage by going into administration?
Steve C
sorry folks, bloody iphone re set mid send
russellm
If we have nothing to lose, then why not. However if we fight the prem & lose, we could risk so much more.
storagematt
Steve C - are you for real? Stony broke for months, paying out two or three times incoming revenue... and then selling no-one in January, but bringing in more players on loan...... and you think that there's been "No Gain".... Wake up and smell the coffee. Overdrawn and trading illegally (insolvently) for many months (maybe even years)..... the people at the top deserve to go prison (and that is surely where they'll end up) for destroying the club.
MorningtonCrescent
How about giving us an option. Allow us to take a 9 point deduction either this season or next. If we go down anyway tack it on to this season. If we don't go down deduct it from next season. At least we would have a genuine fighting chance with 38 games instead of the current 11.
pompeygray
Mornington I assume you've conveniently forgotten the sale of Kaboul and Begovic in January, arguably are last saleable assetts. The rest of the team is made up of championship players at best with the possible exception of Boateng who seems to have commitment issues and Belhadj. You can only sell players if other clubs want them and the only reason we have them is because nobody wants them or wants to pay their wages. Certainly there needs to be an investigation into what has happened and those responsible should be punished. But i can't see that we have gained a footballing advantage which is what the points deduction is supposed to level out.
Steve C
Steve C - so paying Spurs to loan the only player with any balls for the fight isn't gaining an advantage? No money to pay anyone, but can afford to loan in more players - unless they're playing for free of course ....
MorningtonCrescent
Takes 11 players to make a team which is why we're bottom of the table anyway. Were we half way up the table then yes we may have gained an advantage but we're rock bottom with little chance of that changing
Steve C
 

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