As the Premier League nears its climax this weekend, its junior cousin the
Football League is reviewing its insolvency procedures, with dozens of clubs
potentially heading for financial trouble
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An arbitration panel has called on the League to review its insolvency rules
after Leeds United lost its appeal to overturn a 15-point deduction.
Football clubs that go into administration have to go into a creditor
voluntary arrangement post-administration to get back into the Football League.
It called for ‘clear guidelines, objectives and procedures’ for clubs that
fail to enter CVAS.
But in an intriguing postscript to the judgment, the panel also highlighted
the clubs’ parlous state: ‘We were told that there are 40 or more current or
anticipated insolvencies.’
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