Dundee United chairman Stephen Thompson has hailed as ”a big step forward” the SPL’s ruling on how to judge future newco applications.
When the representatives of the top-flight teams gathered at Hampden on Wednesday the most contentious matter on the agenda was the issue pertaining directly to Rangers, who are trying to come out of administration via a Company Voluntary Arrangement (CVA) but who will use the new company route if that is unsuccessful.
The 12 clubs refrained from imposing fixed sanctions on the Light Blues should they ultimately have to apply to stay in the league as a newco.
The proposed rule change would have seen clubs who undergo an ”insolvency transfer” docked 10 points for two seasons and lose 75% of their income for three years.
Instead, a resolution was passed which means the decision on admitting a newco club, formerly taken by the six-man SPL board, would henceforth be made by all 12 clubs and considered on its own merits.
Tannadice chief Thompson was satisfied that the clubs had done all they could under the most trying of circumstances.
”It was a very positive meeting and the SPL got back to business today,” said Thompson. ”Taking the decision on any possible newco and ‘possible’ is the important word here from the board to all the clubs and judging it on a case-by-case basis is a big step forward.
”I think that is the right thing to do because no two companies are the same. What might be the right thing to do in one case might not be right for another.
”And that doesn’t mean one rule for one and one for another it is about looking at the situation and deciding what is best.
”Judging things on a case-by-case basis will take into account circumstances and that is the way it should be. As far as I am concerned, this is a positive move.”
SPL chief executive Neil Doncaster described the fixed penalty proposal as ”obsolete”.
He added: ”With the change in rules meaning that any application for a share transfer would now be considered by the clubs in a general meeting rather than the board, a fixed penalty is not appropriate.”
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”The clubs have decided that, should they be in a situation in future where they were considering an application for the transfer of share to a newco, it would be on the basis that the members could impose a sanction proportionate to the individual circumstances. So the fixed penalties were deemed obsolete and therefore withdrawn.
”But I think it is important to stress that there is no newco application for us (to consider). There is a CVA proposal which have gone to creditors and on that basis we are not anticipating a newco proposal to come forward.”
Doncaster confirmed Rangers’ preferred bidder Charles Green was present at the meeting.
The Ibrox club’s creditors will vote on the a CVA proposal on June 14. If passed, the Light Blues could come out of administration on July 12 and there would be no decision for the SPL to make.
The proposal states that, if the CVA is rejected or other conditions of the deal are not satisfied by July 23, Green’s Sevco consortium is contractually obliged to buy the ”business and assets” of the company for £5.5 million by July 30.
Doncaster also claimed the most significant points to come out of the get-together were the ”very heavy sanctions for clubs going into administration in the future.”
Clubs who enter admin will lose at least 10 points cut from the original proposal of 15 or one third of their previous season’s tally, whichever is greater.
The SPL clubs also approved an extension of sporting sanctions to the parent company of an SPL club that goes into administration and updated the definition of ”insolvency events” in the SPL rules to reflect developments in insolvency law.
Clubs will also be obliged pay their players and Her Majesty’s Revenue and Customs on time and be subject to sanctions if they fail to meet their tax obligations.
A vote to decide the financial fair play matters had been put off twice before and one other hugely significant matter was postponed again on Wednesday.
The resolution to amend SPL voting rules to an 9-3 in all cases was adjourned to the SPL’s annual meeting on July 16.
Currently there is an 11-1 majority needed for major reform, in reality meaning a two-vote veto for the Old Firm.