by Tippy Tappy Football » Tue Jun 04, 2019 1:08 pm
It looks like Notts County will have a 10 point deduction if they go into administration.
If they go into administration after the National League's AGM on Saturday then they will be automatically relegated one step unless they have paid their creditors in full by the time of the next AGM.
If Notts County go into administration before the AGM then the National League can also expel Notts County from the league "unless the Board is satisfied that by no later than 5pm on 31 July (or, if the 31 July falls on a weekend, 5pm on the immediately preceding Business Day) that the Club (or any new entity to which its membership is subsequently transferred under 2.9.2 above) is in a financial position to complete all of its fixtures for the immediate following Playing Season."
"13.A. SPORTING SANCTIONS
13.A.1 If an Insolvency Event shall occur in relation to any Club that Club shall be deducted 10 (ten) points.
13.A.2 Where a Club takes or suffers an Insolvency Event:-
13.A.2.1 during the Playing Season but prior to 5:00 p.m. on the fourth Thursday in March, the points deduction shall apply immediately;
13.A.2.2 during the Playing Season but after 5:00 p.m. on the fourth Thursday in March then Rule 13.3 shall apply; and
13.A.2.3 outside the Playing Season, the points deduction shall apply in respect of the following Playing Season such that the Club starts that Playing Season on minus 10 points (including a Club or Clubs Relegated from The English Football League (EFL), where such Club shall be subject to Rule 12.3 of The English Football League (EFL) Rules or where it has been necessary under the National League System Regulations for a Club or Clubs to be moved from one league to another and such Club would have been subject to Rule 13).
13.A.3 Where the circumstances set out in Rule 13.2.2 apply and at the end of that Playing Season, having regard to the number of Competition points awarded (ignoring any potential deduction):
a) the Club would be relegated in accordance with The National League Rules & Regulations, the points deduction will apply in the next following Season; or
b) the Club would not be relegated as aforesaid, the points deduction will apply in that Playing Season and The National League Rules & Regulations will then apply (if appropriate) following the imposition of the points deduction.
c) If any club relegated to the Competition from The Football League (in accordance with the regulations of The Football League) whilst it was a member of The Football League, took or suffered any such action as set out in Regulation 12.3.1 of the Regulations of The Football League whilst it was a member of The League and the circumstances set out in Regulations 12.3.3(b) or 12.3.3(c) apply, then that club, upon being accepted as a member of the Competition shall suffer a deduction of 10 points, such points deduction to apply in respect of the following Playing Season such that the Club starts that Season in the Competition on minus 10 points."
13.B. GENERAL INSOLVENCY
13.B.1 In the event of a Club entering an Insolvency Event between the end of the AGM and start of the AGM immediately following thereafter (‘the next AGM’) then it shall automatically be relegated by one Step at the next AGM, unless one of the following requirements has been met, namely:
(i) Prior to the next AGM it has Paid in Full all its creditors (including but not limited to Football Creditors); or
(ii) Prior to the next AGM it has Paid in Full its Football Creditors and entered a compliant CVA.
For the purposes of this Rule, a CVA shall be considered compliant if it provides for the following:
- That all Creditors will be paid in Full;
- The first payment under the terms of the CVA shall be made within 28 days of the approval of the CVA and shall constitute a minimum of 10% of the total sum payable;
- The balance shall be paid in equal amounts over the remaining period of the CVA;
- The period of the CVA shall not extend beyond three years from the date of approval.
Notwithstanding the above, in the event of a Club being subject to an Insolvency Event at the date of the AGM, then the Club may be subject to such sanction as the Board may determine, (including expulsion from membership of the Competition) unless the Board is satisfied that by no later than 5pm on 31 July (or, if the 31 July falls on a weekend, 5pm on the immediately preceding Business Day) that the Club (or any new entity to which its membership is subsequently transferred under 2.9.2 above) is in a financial position to complete all of its fixtures for the immediate following Playing Season.
This sanction shall apply in addition to any Club being relegated pursuant to its playing record in the same period namely that in the event of the Club having already been relegated by one Step it shall be relegated two Steps.
This provision is subject to Rule 2.9.1 in respect of Clubs which have transferred their membership pursuant to an Insolvency Event and in that case where there is any conflict between any provision of Clause 14 and Rule 2.9.1 then this Clause 14 shall prevail.