RUFC - It's Minus 17
Rotherham United will start next season with minus seventeen points.
The Statement on the Football League's Official Site is:
FL BOARD STATEMENT
At its meeting this evening, the Board of Directors of The Football League considered applications for membership of The League relating to Rotherham United and AFC Bournemouth.
The Board also considered Rotherham United's request to play its matches at Don Valley Stadium, Sheffield.
- Rotherham United
The Board considered an application from a company - Rotherham United (New Co.) - which has applied to join League 2 in place of the existing club, which is currently in administration.
Rotherham United (Old Co.) has been unable to agree a Company Voluntary Arrangement (CVA) with its creditors and as a consequence is unable to satisfy the normal conditions of The League's insolvency policy for exiting administration.
The Board decided, however, that it was prepared to exercise its absolute discretion under the 'exceptional circumstances' provisions of its insolvency policy. Therefore, in accordance with recent precedent, the Board has made the following offer to Rotherham United (New Co.). Acceptance of the Board's offer is a pre-requisite to the exercise of that discretion:
1. The club will be deducted 17 points for the 2008/09 season. This takes into account the fact that this is the club's second insolvency event in recent seasons.
2. The club must provide a legal waiver indicating that it will not challenge or appeal this decision.
3. The club must undertake to return to Rotherham within four years and provide an irrevocable bond of £750,000. This will be forfeited if the club fails to return within that timeframe, as will the club's membership of The Football League.
4. The club must pay unsecured creditors the amount offered at the time of the CVA hearing.
The Board's offer is subject to the club agreeing these conditions, and formal agreements being signed, by 12.00 noon on Friday.
Win FREE pizza with Vital Football!
Select your team and get 50% off if they score twice.