THE Football League discussed plans yesterday to beef up their insolvency rules in a bid to stop clubs going into administration to exploit a change in financial law, writes Tony Curtis.
The new Enterprise Act in April will see an end to the preferential status award to the Inland Revenue when a company goes into administration.
Previously the IR had been able to claim back the full 100p in the £1, however, now they will be treated the same as any other creditor and will have to get around the negotiation table.
Leicester City have already benefited from the ruling with the IR accepting 10p in the £1 on £6milllion debts.
However, the Football League Board will examine ways to prevent clubs using the law to clear their debts - with one proposal being a points deduction if a club goes into administration.
A FL spokesman told the Evening Press: "We are now conscious of the fact clubs may think that this will give them a playing advantage.
"We don't want to see every club go down this route as it is only bad for the name of football. Administration should not be an option, it should be the last resort.
"The idea of a points deduction is an option that is being looked into, but nothing has been decided."
Any reforms will only be agreed at by the League's 72 clubs at its annual meeting in June.
Updated: 11:29 Thursday, March 13, 2003
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