Chester City FC continues their run of bad luck for 2008/9 season with the announcement that the Club has taken the decision to enter voluntary administration.
What does this mean for the club?
Not only have Chester City FC lost their spot in Coca-Cola League Two but now face starting the 2009/10 season with a ten point deduction adding to the misery.
Chester City FC is not alone in this fate, joining Southampton who may suffer the same penalty at the bottom of the Coca-Cola Football League Championship. Southampton FC is desperately looking for a buyer to try and deflect a catastrophic slide into administration.
Luton Town FC faced the beginning of the 2008/9 season with a deficit of ten points deducted for issues with their financial status. Upon Luton Town FC following the incorrect procedure, and as a result not following the insolvency rules instilled by the Football League, a further twenty points were deducted from the team. Luton Town FC began the season thirty points down.
Luton Town FC played a good season and without the thirty points deduction would now be sitting comfortably in the middle of the Coca-Cola League Two table. Unfortunately for fans they have been unable to come back from such a devastating penalty and face relegation, alongside Chester City FC, to the Blue Square Premier Conference Division.
This rule in football came to my attention in 2007 when Leeds went into administration. Leeds played football well enough to maintain their status as a member of the Coca-Cola Football League Championship League only to be forced into relegation by the ten point penalty being awarded. This did mean, however, that they were able to start the new season with a clean slate and Leeds was lucky enough to ‘rearrange’ their financial situation.
The fear is that that others will follow in the footpath of Chester City FC and Southampton FC with the current financial climate influencing not only sponsorship capabilities of associated companies but also the fans cash available for season tickets, match days and merchandise.
A statement has been issued by Martin Shaw, the accountant who will handling the situation for Chester City FC, along with the insolvency company Refresh Recovery Limited which said:
“Supporters can be assured that our aim is to find a new owner for the club, so that professional football continues to be played in Chester from the start of the new season.”
A second statement issued by Stephen Vaughan, Chester City FC’s major shareholder stated: Â
“I can assure Chester City supporters that it has been done in the best interests of the club.â€
Let us know your thoughts at Directory of Chester.