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Tougher penalties for insolvent football clubs in Scotland

28 April 2015

Senior football teams have voted at the recent Scottish Professional Football League meeting to increase the punishment for football clubs that become insolvent.

15 points are now to be deducted if a club goes into administration with another five points off the following season. If the club goes into administration again within five years, there will be a 25-point penalty, followed by a 15-point deduction the following season.

Previously, the rules gave just a 15-point deduction in the first instance and if the club went into administration for the second time within five years, there would be a 25-point deduction.  

Dundee, Rangers and Hearts have all entered administration within the last few years, with Dundee appointing administrators twice. 

The tougher punishment has been welcomed by Scottish clubs, including Hibernian FC, in a bid to help struggling clubs avoid administration by facing financial problems as soon as possible. Staff and players can be left without months of pay in administration cases, something which the Scottish Football League is keen to stop. 

Financially distressed clubs have several options available to them, including the company voluntary arrangement. Directors keep control of the club and administration can be avoided while debt is paid back over several years. Take a look at our football and CVA page for more information.