Question about Administration

Discussion in 'Prem talk, Those Other Leagues, and International' started by Fulhamburger, Jul 14, 2008.

  1. Fulhamburger

    Fulhamburger New Member

    Joined:
    May 11, 2007
    Location:
    Kansas
    What exactly is administration?

    How do you "enter" and "exit" administration?

    I know about Leeds and now Luton Town, but I don't know what these clubs did to have point reduction penalties.
     
    #1
    Fulhamburger, Jul 14, 2008
  2. Optimizer

    Optimizer New Member

    Joined:
    Aug 22, 2006
    BBC Sport has a good article on the basics of the concept.

    It's essentially a business survival tactic and the league penalty for teams that enter administration is to penalize them for not keeping their finances in order. It's harsh, but it's a way to keep teams mindful of the debts they make trying to stay competitive in soccer.
     
    #2
    Optimizer, Jul 14, 2008
  3. Fulhamburger

    Fulhamburger New Member

    Joined:
    May 11, 2007
    Location:
    Kansas
    Thanks optimizer, helps alot.
     
    #3
    Fulhamburger, Jul 15, 2008
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