Blackpool AVOID points deduction after February’s appointment of joint receivers

Blackpool AVOID points deduction after February’s appointment of joint receivers
Blackpool will not face a points deduction following February’s appointment of joint receivers, the English Football League has confirmed.Under EFL rules, clubs that experience an ‘insolvency event’ – such as being placed in administration – are usually subject to a 12-point deduction.getty1

Blackpool have avoided a point deduction

This is normally seen as having gained an unfair advantage by shedding debts other better-run clubs have met.The appointment of receivers by a judge – in this case to force through the League One club’s sale to settle former owner Owen Oyston’s 25million debt to former business partner Valeri Belokon – could have been viewed in this light.But the EFL board has decided this is a special case, unrelated to the club’s actual financial position, and the points penalty was therefore ‘not applicable’. In a statement, the EFL said: “Based on the evidence presented and the judgement of the court, the board agreed that the appointment of the receiver is not material to the club’s ability to fulfil its obligations as a member club and as a result should not be regarded as having suffered an insolvency event.”The development was quickly welcomed by the Bloomfield Road club, with joint receiver Paul Cooper describing it as ‘excellent news’.

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Cooper said he was also ‘delighted’ for manager Terry McPhillips and the players ‘as they know exactly where they stand for the remainder of this campaign and next season’ – a reference to the fact the deduction could have been imposed immediately or at the start of the next campaign.“It also allows the sale process to continue with a greater degree of clarity and certainty,” he added.Blackpool are currently eighth in League One, eight points off the last play-off spot, with five games to play.

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