Role Of The Independent Appeal Hearing

Surely it can only be to determine whether the EFL has correctly interpreted its own rules and applied its sanctions accordingly. Questions relating to the Fit and Proper Person test (or whatever it’s called) surely cannot be within its remit. I would have thought that even the rumoured betting scam (which I think has been discredited) is outside of anything they could be expected to consider. Having said that, given this is the first time a club has appealed (to my knowledge), perhaps I’m mistaken.

 

A Club can appeal against a decision of the Board to impose a 12-point deduction under the EFL Regulation 12.3.10, and the appeal will be heard by an independent panel appointed by Sports Resolutions. That independent panel will determine whether the relevant Insolvency Event(s) arose solely as a result of a Force Majeure event, caused by and resulted directly from circumstances, other than normal business risks, over which the Club could not reasonably be expected to have controlled.

EFL Update: Wigan Athletic 7 July 2020.

The phrase in bold is the entire remit of the panel. Was it only force majeure? If not. Appeal lost.

 

Can't see how it was only 'force majeure', 'he/they' bought the club during a pandemic lockdown (didn't they).

 

I don’t think that they’re arguing Covid-19 as the force majeure event, rather than the fact the owner reneged on obligations committed to when taking over.

I guess we’ll find out in the next couple of weeks

 

So

So if the panel decides Covid-19 was indeed a

So, if the panel were to decide that Covid-19 is indeed a Force Majeure event then that presumably means that any club going into administration in the near future could similarly avoid a points deduction. But if Covid-19 is not deemed to be Force Majeure (as the EFL have already stated), then their appeal can only succeed on some other Force Majeure basis. I assume this is why they are suggesting that the season not ending when it should have is such an event, and interfered with their cash flow projections. But given that the sale transaction took place after lockdown surely they cannot base their appeal on that. Seems all very odd to me.

 

Which is a nonsense argument. Let's say he did exactly as Wigan have claimed. That boils down to him not giving them some money. That must be a bit ****, but wouldn't result in administration if they had any money. But they haven't got any money, they've spent it all and had to apply for administration. And so they lose 12 points. There isn't a case.

(not aimed at you, just a general comment)

 

My understanding is like lethtyke said they are claiming because the owner passed all the proper tests no one could predict pulling out instantly.

 

Their owner (or a board member) already blamed it on the impact of the pandemic. Also, I really cannot see how an owner lying about funding the club or being dodgy could ever constitute force majeure. It's obviously regrettable and I am glad we are not in Wigan's position but if you enter administration it's 12 points. I cannot slice it any other way.

If Wigan were to win the appeal, they would still be in administration. So, Wigan would not be deducted the 12 and yet could pay Barnsley (one of their creditors) 25p in the pound on their debt. Ergo, Barnsley are relegated and Wigan have suffered no consequences but can pay Barnsley 1/4 of their debt. Nah. Not going to happen.

 

And the owner is saying it was due to problems caused by Covid-19

 

Something just occurred to me, if as they claim they had paid everyone, why couldn’t they have just continued until allowed to sell players(couple of weeks), sell players(granted would be below market value), pay people not upto date and avoided administration until end of season?
I’m guessing the answer is they could but thought they would be safe and opted to take the points this season.

 

All football-related debts have to be paid in full if the club wishes to retain its FL share so Barnsley would actually have to receive whatever it is owed. Bizarre isn't it given that the tax man will only get 25p in the pound?

 

Yeah he is, but would have thought fact the purchase took place during the shut down and presumably the new company provided evidence of having the cash shows that not to be a factor.

 

Exactly

 

Where have you read that? I've seen that all debt can be paid at 1/4.

That's not what I've read:

"Wigan face a 15-point deduction if football creditors are not paid 25p for every pound owed, with the bill totalling £1.5m".

 

Administration is to prevent another company owed funds from applying for a winding up order. It's to protect itself from creditors. If that's what was going to happen they had no choice

 

But they are claiming they chose to volunteer into it as they knew in the future they couldn’t continue as was.
They are also saying no one was owed monies overdue so no one by now would be pursuing a winding up order.

 

Defo football related in full other creditors as agreed

 

If that was the case their application would have been turned down.