So once again the penalties being imposed on clubs who ahve gone into administration are in the news. Luton are already on -30 and if they manage to start the season then Rotherham and Bournemouth could start on -20.
This is not a good thing for our league. For 3 teams to be fighting their own little mini-relegation league makes a mockery of the competition, and seems unfair on the fans.
Against this there is the argument that penalties are applied for good reason. Teams overspending pushes wages up for everyone and gives them an advantage while they can keep it up. This is unfair on teams who are well managed and time and time again results in clubs going into administration and not paying their creditors, usually HMRC as the largest creditor and including St Johns Ambulance, a charity organisation without whom we couldn't have any football. There is a lot of truth in this and the situation needs to be dealt with.
My suggestion is this: instead of points penalties being imposed, clubs coming out of administration should be given a number of strict financial conditions. This should include prompt payment of all creditors, who should be able to appeal to the league if their payments are overdue, and if the club persisted than a (relatively sane) points penalty could be put into place. Other conditions should relate to overall debt. An auditor or similar should be appointed to oversee this.
Also, and this is the key part, in order to ensure that the club can do this and to impose the appropriate 'punishment,' a strict wage cap should be put into place , on an individual player basis as well as overall, at a lower level than the club would otherwise pay. This would be inclusive of any bonuses etc and the level would be set by the league.
This penalty would be an appropriate penalty in kind for the overspending which caused the problem, whilst still maintaining the league with every team starting on the same number of points. It would also help the club in establishing financial security and break the cycle of teams repeatedly going bust, and would reduce unfair inflationary pressures on the wages market.
OK that's a bit longer than I thought it would be. Any views?