Dundee’s punishment sets a precedent for clubs entering administration

The rewards in football are vast. Success on the pitch can be matched and even exceeded by great financial rewards.

Television rights, merchandising, gate tickets and even flogging the brand abroad can net the big wigs in the expensive seats a fortune that could buy a small country.

It’s no surprise then that clubs are willing to risk it all for that taste of success and teeter on the edge of financial stability in doing so; however the Scottish Football League has taken the decision that this banzai approach to success will no longer be tolerated.

First Division Dundee have been deducted a whopping 25 points for entering administration in what is clearly intended as a warning to other clubs with a gung-ho approach to finances.

The imposition by the SFL will leave Dark Blues bottom of the First Division on minus 11 points, 20 behind the nearest team Morton, with only 25 league games left to play and to make matters worse they have also been banned from signing any new players until they exit administration.

Clearly the SFL is hoping that by making an example of Dundee by increasing the scale of the punishment they will encourage clubs wary of incurring such a penalty to be a sound financial footing.

The SFL board barked authoritatively in its statement: “We are of the opinion that lessons are not being learned.”

“Clubs have to realise that they can’t treat their Her Majesty’s Revenue and Customs tax obligations as something akin to a credit card.”

They also said they will “reconsider the matter and deal with the club as it sees fit”, if the Tayside club are still in administration by 31 March 2011.

Naturally the club themselves are challenging the decision which has demoted them to strong relegation candidates.

The club’s administrator Bryan Jackson told BBC Scotland: “Not only will we appeal under the SFL rules but I’m now going to consider a legal appeal.”

“Everyone at the club is in absolute, total shock. They cannot understand the severity of the sanctions.

“It’s made a difficult job even more difficult.”

Having already gone into administration 2003 when the Dark Blues where in the Premier League, the SFL has seemingly taken a dim view on the repeat offender.

The decision does leave the club in a thorny spot as they search for fresh investment, which will be difficult to find with the club rooted to the foot of the second tier and is something which Jackson morbidly recognises.

“If you were an external investor, unless you were connected with the club, why would you have any interest in a club that has nothing to play for this year and is going to be relegated?”

However galling and even callous the decision may appear to be considering previous sentences given to clubs; the SFL has reacted with authority as they look to preserve the integrity of the league.

Previous ruling south of the border have often been soft and failed to address the problem and impose a meaningful deterrent to clubs in the future.

Even FIFA and UEFA have balked at tackling big issues, in particular the problem of racism where more often than not nominal and derisory fines are imposed on teams.

The SFL has set a benchmark for what is deemed acceptable and the ruling certainly sends out a message to other clubs, but seemingly it has done so at the expense of Dundee, who will hopefully rise again from the ashes of their disaster.

Posted By Dan Mobbs - Tuesday November 2, 2010.
Tags: Dundee, Scottish League