Points deduction for struggling clubs agreed

Premier league chairmen have agreed in principle to a points deduction for clubs that go into administration, a spokesman for…

Premier league chairmen have agreed in principle to a points deduction for clubs that go into administration, a spokesman for the league said today.

Chairmen of the 20 clubs have yet to ratify the decision, but a nine-point deduction is likely to come into effect next season.

That will come as a relief for Trevor Birch, chief executive of debt-ridden Leeds United, who has until 5 pm on Friday to find £5million to fund the club until the end of the season or secure a rescue bid.

If he is unsuccessful, he may be forced to call in the administrators.

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The Football League, comprising the three divisions below the top flight, voted last year to deduct 10 points from clubs in administration, a form of creditor protection. The sanction will begin next season.

The Scottish premier league agreed the same punishment last week.

An immediate nine-point reduction would have been disastrous for Leeds, who are over £80million in debt and desperate to avoid relegation.

Leeds are rooted to the bottom of the table, five points away from safety. Dropping out of the lucrative premier league would deepen their financial problems.

The club was helped on Wednesday with a £1.5million settlement from Manchester United as a final payment from the £30million transfer of  England defender Rio Ferdinand in 2002.

Leeds are also negotiating with a consortium of local businessmen hoping to launch a £20million rescue bid.

Birch, who does not wish to sell off any of the players, is reported to be meeting the squad on Thursday to discuss a wage deferral. The players, led by long- serving midfielder David Batty, last week said they would only accept the idea as a last resort.

In the past 12 years, 22 English clubs have gone into administration, but none from the top flight.