League Two this season kicks off with the near farcical situation in competitive terms of one club starting with minus 30 points and two others with minus 17 points. Many fans feel that the treatment given to Luton, in particular, 20 of whose points were deducted by the Football League because this is their third administration is very harsh.

At the risk of teaching some grandmothers to suck eggs, it is first worth recapping a bit. The "sporting sanctions" (points deduction) for administration was introduced by the League some years ago to respond to the situation where clubs were going into administration through living beyond their means, and coming out the other side having gained a competitive advantage over other clubs who had behaved in a more financially responsible way. Leicester City was the case which really brought this issue to a head. Although somewhat crude, it was at least an attempt to do something about the problem. The big problem with it is, of course, that it punishes the fans and new owners, not the people
responsible for the problems.

The position has been altered by some developments since. The Revenue, having lost their own ‘preferred creditors’ status, have now adopted a policy of blocking any CVAs which they can because of their opposition to the football creditors rule, which requires all football creditors, be they players or other clubs, to have their debts settled in full. This left Leeds and Luton (with at least another two clubs in the pipeline in a similar position), between the proverbial devil and the deep blue - if they pay the football creditors in full, as they have to under League rules, the Revenue block the CVA, but no CVA and they breach the rule requiring creditors to be satisfied. This led to an ever bigger points deduction than that imposed for just going into administration.

As supporters, we should have a full debate on the football creditors rule. I can see the arguments on both sides. It's an internal trading system, and a club couldn't for example decline to play an away FA Cup tie at a particular club on because they might not forward their share of the gate receipts.

Also, if players’ wages don't have to be settled in full, it could encourage signings which clubs can't afford and lead to the collapse of the transfer system. On the other hand, it feels very uncomfortable that the local printer, caterer or whoever, not to mention us all as taxpayers who have to make up the shortfall, get a more raw deal than creditors within the industry.

Luton, for example, owed money to a Premiership club and the local school. It doesn't feel right that the former should get paid in full and the latter only get a fraction of what they are owed.

One answer, of course, is to have a much stronger regulatory regime, which has a reporting and monitoring system which prevents a club running up massive debts to Revenue in the first place (ideally one which prevents debts to anyone being accumulated). Rugby League already does this.

There are a couple of recent encouraging developments. First, the Football Conference has just voted to introduce such a rule. They are to be commended for this, and hopefully it will be the forerunner for the FL.

Second, I have been raising some of these issues on the FA Committee on which I sit, and a joint committee between that Committee and the Football Regulatory Authority has now been established to look at the whole question of financial regulation. I have been appointed to that joint Committee. I have already alerted the Supporters Direct Board to this, and will liaise closely with SD on this, as I already do on all FA matters. I'm certainly not going to promise anything, but things may be inching in the right direction.

Luton, of course, have been hit with two separate penalties - 10 points for the agents issue by the FA and 20 points for the lack of a CVA by the League, upped from the 15 points given to Leeds because it's the third administration in recent years. At least two other clubs are likely to also get a 15-point penalty.

It is getting ridiculous, and there surely has to be a better way of doing things.

FSF website: http://www.fsf.org.uk

Supporters Direct website: http://www.supporters-direct.org

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