Posted by Ed Thompson on Wednesday, April 25, 2012
The fall-out from Rangers financial collapse continues. Scottish Premier League (SPL) clubs will vote on new rules at the end of April that would be applied if a club enters Administration or if it suffers liquidation and is replaced by a new club (or "newco").
In future, any club entering administration would be docked 15 points (or 1/3 of their points at the time of the insolvency event, if that is a greater number of points).
Significantly, any "newco" would also be docked 10 points from the start of the next two seasons and would lose 75% of their SPL payments for the next three seasons.
On top of this, there is the UEFA impact. UEFA require a club be a going concern, submitting accounts for three seasons before they are given a license to compete. Although Rangers have lobbied UEFA on this issue, it appears that a "newco" would effectively also suffer a three year UEFA ban.
Clubs would also be liable for any fine and/or transfer embargo imposed by SFA - Rangers have been hit by a fine for financial transgressions and had a 12 months transfer embargo imposed.