Saints docked 10 points

Southampton effectively relegated to League One

Last updated: 23rd April 2009   Subscribe to RSS Feed

Saints docked 10 points

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Southampton will be playing League One football next season after being deducted 10 points for breaching Football League insolvency regulations.

The decision means that the 23rd-placed Saints are effectively relegated from the Championship.

Southampton's parent company Southampton Leisure Holdings called in the administrators at the beginning of April, but the club were confident they would avoid punishment.

However, an inquiry has found the St Mary's outfit responsible and the points deduction will take effect either in the current season, if Southampton avoid relegation, or next term, if the club do not beat the drop.

A Football League statement said: "At its meeting today, the board of the Football League reviewed the report of the independent forensic accountants commissioned by the League to examine the circumstances at Southampton Football Club, together with external legal advice as to the interpretation of the League's regulations.

Co-operation

"The report, by Grant Thornton, set out in detail the various inter-relationships between the four different group companies at Southampton Leisure Holdings Plc (the Holding Company).

"The conclusions were based both on the content of the annual accounts published by the Holding Company, which include the club, and other information made available to Grant Thornton as part of their enquiries.

"The Board noted that Grant Thornton reported that toward the end of their enquiries co-operation with them was withdrawn.

"The report concluded, among other things, that: 1.The Holding Company has no income of its own; all revenue and expenditure is derived from the operation of Southampton Football Club Limited (SFC) and the associated stadium company.

"2.The Holding Company is solvent in its own right. It only becomes insolvent when account is taken of the position of SFC and the other group.

Inextricable

"3.The three entities (the Holding Company, SFC and the stadium company) comprise the football club and they are inextricably linked as one economic entity.

"In light of all this advice, the board concluded that an administrator had been appointed in respect of the club or part of its undertaking or assets. Accordingly, it was left with no alternative other than to invoke its 'Sporting Sanctions' regulations and apply a 10 point penalty to the club.

"The other provisions of the League's insolvency policy also become effective.

"As the insolvency event occurred after the Football League's deadline of the fourth Thursday in March, the points deduction will take effect either: 1.In the current season, if Southampton avoid relegation to League One; 2.Next season, if the club does not avoid relegation."

Comments (94)

Russ Brass (Southampton fan) says...

The league are going to have to be careful with the perilous state of so many clubs. If they keep deducting points they will alienate the majority of fans (if they haven't already!). Why punish fans and players because of financial problems caused by incompetent/impecunious directors? What the league should be doing instead is banning the directors of clubs that go into administration on the ground that they are 'unfit' to be involved in the financial management of football clubs. The guys that caused all the problems at Saints get off scot free.

Posted 12:18 1st May 2009

Paul Edwards (Liverpool fan) says...

Its not as if this is a new rule just applied! The rules have been outlined and enforced. Southampton broke the rules so have the 10 point deduction. So why all the compliants? Southampton and Leeds are big clubs with very bad management and organisation and its of no surprise their downfall. I feel sorry for Luton and other clubs who are smaller and dont have the big time experience. Southampton for me have been a club asking for trouble for years! It must be killing you to see Portsmouth in the Premiership. The Saints have been through so many manangers and have a chairman who doesnt support his managers or the club. Its a pity that now Saints fans have only just woken up to that!

Posted 13:11 27th April 2009

Mary Smart (Southampton fan) says...

We have been trying to get Rupert Lowe out of our club for many years. We could have easily had crowds of 30.000 and the money this would have generated had he gone when it was clear he was not wanted. Bad decisions by a board that have affected the innocent fans who will support the Saints whatever league they are in. Many of the so called big clubs are now benefitting from the players who came through our fantastic academy. We support our local club, are not glory hunters and we are hurting by being penalised for something we had no control over.

Posted 23:02 26th April 2009

Helen Ings (Portsmouth fan) says...

Although I support Pompey, I have always considered a point deduction criminal - nothing like kicking a man when he is down, is there? Despite what the people of Southampton think, not everyone "down the road" wants to see your club fold. Who would be our rivals?

Posted 15:46 24th April 2009

Johan Anderson says...

I dont know how a West Ham fan can possibly have the cheek to comment, you should have points deducted, but your a premier league club who seem to get special treatment, Terrible how Saints get deducted for a different company's problems

Posted 15:25 24th April 2009

Tony Lodder (Tottenham Hotspur fan) says...

I despise the FA and what it has done to our game, who appoints these no nothings anyway, what does Malwinney know about football anyway. I suppose at the end of the day an unfair rule has to be applied consistently else it is not fair on the other clubs that have had point deducted... unless of course you are "West Ham"

Posted 15:15 24th April 2009

Chris Billimore (Southampton fan) says...

It's the Football League who govern this, not the FA. The League is a members club of which Southampton are one. What they've got wrong is that the 10 point penalty needs to apply next season if administration is entered after the 4th Thursday in March. The penalty needs to be a standard one (like the crime) and kick in clearly at the start of a subsequent season. Suppose it was Ipswich in administration. They would have 10 points taken off this season (since they will have stayed up by finishing around 9th) reducing them maybe 8 or 9 places in the table. I.e. virtually no penalty at all. So presumably Ipswich's penalty would instead have been deferred to next season to have an effect. What about if it was Wolves? They would be reduced from Champions to 3rd or 4th place and still be in the playoffs. If Southampton get out of the bottom 3 then their penalty will be relegation which is utterly unfair on everyone. The outcome should instead be starting next season in the Championship on -10. I asked the Football League about this point today but they were unsure as to what would happen to a Wolves or a Cardiff in this situation. What a mickey mouse organisation.

Posted 15:04 24th April 2009

Liam Mclean (Leeds United fan) says...

Dominic Smith (Wolverhampton Wanderers fan) says... I understand the rules regarding losing points when relegation is a certainty and I certainly think what Leeds did a few years ago (namely going into administration when they were already relegated in order to lose their 10 points when it didn't matter) was wrong. Your wrong HMCE put Leeds into administration due to unpaid tax bills, Leeds did not want to go into administration and had tried to agree several repayment plans with HMCE, all of which were refused so Leeds had no other option than to go into administration. There were no rules in place about points deductions etc when Leeds went into administration and it was the Football League and its members (ie every club in the league) that voted and made the rules up to punish Leeds. If everyone can remember each team in the Football League had the chance to vote on the punishment and just about every team voted for the points deduction for Leeds. If those clubs hadn't of voted for the points deduction, then there would be no debate about it now. Also Leeds not only suffered the 10 point deduction in the Championship, they also were deducted 15 points in League One, so where is the consistency with Southampton?? How this has come back to haunt so many clubs, and will continue to do so with so many clubs on the brink...

Posted 14:49 24th April 2009

Jack Downes (Birmingham City fan) says...

Shocking decision by the governing bodies, heart goes out to Southampton and all it's fans... good luck for next season with or without the deductions... One question though, is it in the best interests of everybody in the Championship to ensure Southampton finish 21st in the league, thus relegating them anyway this year which is inevitable (with the deduction) but meaning no 10 point deficit next year? Just a thought, i know if it was my team playing Southampton, and we had relatively little to play for (as Burnley and Notts Forest MAY), i'd be supporting the Southampton cause for the good of football...

Posted 14:08 24th April 2009

Fran Kelly (Birmingham City fan) says...

This is totally a legal questionas to wether the corporate veil which separates a business from its owners should have ever been lifted. Although being a single economic unit would allow this veil to be lifted as there is case law that has shown this occuring. According to Adams V Cape industries a judge stated that the only reason for the veil to be lifted should be fraud and that it should not be lifted at a wim because people feel it fair and just to do so. This has been a major case in company law and to ignore it seems unjust. Putting this into general business speak you would not deem it fair for a profitable company to be stated as insolvent when its holding company is insolvent due sto its wrong decisions not the profitable companies.

Posted 14:02 24th April 2009

Dominic Smith (Wolverhampton Wanderers fan) says...

What has happened to Southampton is totally unfair. I disagree with the rules regarding clubs going into administration, I don't think there is a way to deter a club - If it happens, it happens, but that's by-the-by. I understand the rules regarding losing points when relegation is a certainty and I certainly think what Leeds did a few years ago (namely going into administration when they were already relegated in order to lose their 10 points when it didn't matter) was wrong. But Southampton aren't doing that - they've staved off going into administration for as long as possible until it was impossible to stay afloat any longer. So to say if they go down anyway they will have 10 points taken off next season is unfair - This is not what these rules were implemented for!! If there were 20 games to go until the end of the season and Southampton looked likely to be relegated, they would lose their points this season, not next. The F.A. has got it so very wrong...again.

Posted 12:58 24th April 2009

Andrew Sampson (Sheffield Wednesday fan) says...

I feel sorry for the fans who suffer the penalty, it's not the chairman or owners who ruined the club that get the deduction. It's a crap system, but it was brought in with the best intentions to stop clubs going bust, resurrecting themselves free of debt & carrying on & yes some of the clubs people support on here are the main guilty parties. Clubs run properly lose out to the ones who rack up debts & then go bust, how do you penalise them other than points deductions.

Posted 12:55 24th April 2009

Tony Burnley (Burnley fan) says...

As a football fan in general I cannot honestly see - how in any other business - a company can be penalised for actions of its 'owner'. The 10 point deduction is hard but irrespective of wether it is right or wrong every single club in the land faces the same punishment should administration occur. If this is the straw that broke the camels back for Southampton then it shows just how close clubs are sailing to extinction. Money and greed has taken over the game and historically it is only the 'lower' clubs below the top 4 that really struggle. We are coming down to Southampton tomorrow to party in the hope we clinch the point for the playoffs but we will NOT be celebrating the relegation of Southampton should we win. Good luck to all at both Burnley and Southampton and hope for an entertaining game despite the result being paramount to both clubs for differing reasons.

Posted 12:34 24th April 2009

Scott Mckenzie (Southampton fan) says...

Whether people, rival clubs or the league think it is fair or not, Southampton football club and their holding company (which is in administration) are two separate entities and it is NOT correct to deduct 10 points from the football club. The situation can be compared to someone setting up a Limited company, which goes into administration, then they get their house taken off them anyway! That's the whole point of a Limited company, the person is protected from any repercussions. Southampton FC should be protected from any repercussions, whether it is fair or not. The League can't just change the law.

Posted 11:48 24th April 2009

Andy Cole (Portsmouth fan) says...

Three ships have left southampton never to return: The Titanic, The Premiership, and now the championship.

Posted 11:26 24th April 2009

Martyn Christopher (Bournemouth fan) says...

Again it seems that the actions of a few cause misery to thousands. Being a Bournemouth fan we started the seaon on minus 17 points and might just escape relegation to the Blue Square Premier. I am sure if you start next seaon on minus 10 points I am sure you will be fine.

Posted 11:10 24th April 2009

Anthony Allen (Luton Town fan) says...

I feel sorry for the saints, I just hope they don't end up the same way as Luton and i really think the FA need to start looking after the smaller clubs like Southampton, Luton and Chester city and not hit them with silly points deductions.

Posted 10:18 24th April 2009

Peter Ward (Nottingham Forest fan) says...

I feel sorry for the supporters,and all the other clubs that have been deducted points all because of what leicester did a few years ago.GOOD LUCK SAINTS!!

Posted 10:10 24th April 2009

Ben Harper (Leicester City fan) says...

Wouldn't worry too much Soton fans. As a Leicester fan I was absolutely distraught when relegated, but after a few games started to enjoy it a lot. There was some good old fashioned football played and some very very good games, big ones too. It won't feel like DIV2 at all. Leeds, Millwall, MK Dons, Peterborough and Tranmere to name a few have all been playing great football this season and achieved some good gates too. The quality of football really isn't much different to DIV1 either. The atmosphere at the games has also been great. Soton fans; you won't notice it too much so don't worry and keep the stadium full.

Posted 10:08 24th April 2009

Aaron Brown (Southampton fan) says...

What I'd like to know is why a Manchester United "fan" is sticking his oar in? What possible contribution can a prawn sandwich eating glory hunter, that probably lives in London and watches them on the telly, make to a serious football debate?

Posted 09:50 24th April 2009

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