Meeting with the FL (Part 2)
posted by Alan Palmer on Thursday 11th of February 2010 09:03:31 AM
Some further points from our meeting with the Football League last week -
The League emphasised the need for the Administrator to keep his costs down, he must not add to the Club's debt.
Under League rules Administration is limited to a maximum of 18 months. A Club cannot start two consecutive seasons in Administration.
The League confirmed that Palace's share of the TV money due to Clubs at the end of April will not be released early.
If Palace do not exit Administration via a CVA then further points deductions will apply. The exact number would be determined at that time.
The FL will monitor the Club after exiting Administration. Any new owner would have to show proof of funds and a solid business plan to ensure there is no likelihood of the Club going back into Administration. Monitoring includes oversight of club budgets, a rolling transfer embargo and confirmation that payments to HMRC are up to date.
It will be the Administrator's decision to liquidate the Club if he no longer has the funding to maintain the Club in Administration. The League will accept the Administrator's decision. There would be no emergency funds from the League.
Back to the News.
