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League alters administration laws

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The Football League is to change its rules about clubs entering administration after Leeds and Boston exploited a loophole.

 

The two clubs timed going into administration to avoid starting next season with a 10-point penalty.

 

But the League plans to implement a cut-off date, so any club entering administration after that point would be penalised the following season.

 

The League have yet to decide what date the cut-off will be.

 

In 2003 the League brought in a rule where they would penalise a club 10 points for entering administration in order to deter clubs from getting heavily in debt and then seeking a quick-fix solution.

 

But Leeds and Boston were all-but relegated when they chose to enter administration to sort out their financial problems, meaning the penalty would be largely ineffective.

 

Their action drew criticism from rivals and has caused the League to act.

 

League chairman Lord Mawhinney said: "The League board have made the right decision.

 

"The original intention of 'Sporting Sanctions' was that clubs should suffer a penalty by going into administration, as a spur to better financial management.

 

"None of our clubs have done anything wrong but we need to take steps to make these sanctions meaningful."

 

http://news.bbc.co.uk/sport1/hi/football/6670777.stm

Leeds should start next season with a 10 point deduction.

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