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Football chiefs mull clubs' debts Football chiefs mull clubs' debts
(about 22 hours later)
By Bill Wilson BBC News By Bill Wilson BBC News, at Soccerex, Wembley Stadium
Rules determining the way Football League clubs go into administration, and the punishments they receive, look certain to be reviewed by the competition's bosses.Rules determining the way Football League clubs go into administration, and the punishments they receive, look certain to be reviewed by the competition's bosses.
Leeds fans are defiant in the face of their club's plightLeeds fans are defiant in the face of their club's plight
Both Leeds United and Boston United called in administrators as the season grew to an end, with the Elland Road club thus incurring a 10-point penalty deduction this season instead of next.Both Leeds United and Boston United called in administrators as the season grew to an end, with the Elland Road club thus incurring a 10-point penalty deduction this season instead of next.
Boston, who went into administration during their last game, have yet to hear their fate.Boston, who went into administration during their last game, have yet to hear their fate.
League chairman Brian Mawhinney said: "Are we going to think about addressing this issue? Yes, we are.League chairman Brian Mawhinney said: "Are we going to think about addressing this issue? Yes, we are.
"Is it [going into administration] allowed for by our rules? Yes, it is."Is it [going into administration] allowed for by our rules? Yes, it is.
"But does it raise a number of questions? Yes, it does.""But does it raise a number of questions? Yes, it does."
Channels openChannels open
Leeds United went into administration, but were immediately bought back from the administrators by a new company, headed by club chairman Ken Bates.Leeds United went into administration, but were immediately bought back from the administrators by a new company, headed by club chairman Ken Bates.
Mr Mawhinney, who became League chairman in 2003, said that when he took the helm, a number of clubs had gone into administration, and that over the past four years, that had changed.Mr Mawhinney, who became League chairman in 2003, said that when he took the helm, a number of clubs had gone into administration, and that over the past four years, that had changed.
Leeds United now have no chance of evading relegationLeeds United now have no chance of evading relegation
"Until last week's events, we did not have any in administration," he told the BBC at the Soccerex football finance seminar at Wembley Stadium."Until last week's events, we did not have any in administration," he told the BBC at the Soccerex football finance seminar at Wembley Stadium.
The chairmen of the 72 Football League clubs will hold their annual meeting in early June.The chairmen of the 72 Football League clubs will hold their annual meeting in early June.
Mr Mawhinney said: "We will start thinking about the administration issue before the annual meeting.Mr Mawhinney said: "We will start thinking about the administration issue before the annual meeting.
"However, if we think the issue has not been properly discussed by then, we will not be bounced into making a decision at that time.""However, if we think the issue has not been properly discussed by then, we will not be bounced into making a decision at that time."
He said the League was listening to what the clubs were saying on the issue and "keeping 72 channels open".He said the League was listening to what the clubs were saying on the issue and "keeping 72 channels open".
Mr Mawhinney also pointed out that the Football League could not prevent clubs going into administration.Mr Mawhinney also pointed out that the Football League could not prevent clubs going into administration.
"They make their own decisions, they have their own directors," he added."They make their own decisions, they have their own directors," he added.
Right balanceRight balance
Administration is undertaken by cash-strapped or indebted clubs to allow them to stay in business.Administration is undertaken by cash-strapped or indebted clubs to allow them to stay in business.
The League's 10-point penalty deduction was introduced to make sure clubs do not use it as any easy way of avoiding their financial responsibilities, or live beyond their means as they chase success on the playing field.The League's 10-point penalty deduction was introduced to make sure clubs do not use it as any easy way of avoiding their financial responsibilities, or live beyond their means as they chase success on the playing field.
"We have tried to create a framework which encourages directors to handle their money sensibly for the sake of the clubs and fans, " Mr Mawhinney said."We have tried to create a framework which encourages directors to handle their money sensibly for the sake of the clubs and fans, " Mr Mawhinney said.
"When I came into the Football League, the mantra of the clubs was 'Success', but I have tried to change that so that clubs seek the correct balance between seeking success and achieving sustainability.""When I came into the Football League, the mantra of the clubs was 'Success', but I have tried to change that so that clubs seek the correct balance between seeking success and achieving sustainability."
There appears to be little hope of football creditors being paid in full under Boston United's Company Voluntary Agreement - which is a requirement of the League's articles and insolvency policy.There appears to be little hope of football creditors being paid in full under Boston United's Company Voluntary Agreement - which is a requirement of the League's articles and insolvency policy.