Decision on 12-point deduction deferred as EFL give Blackpool FC board more time to review club's finances

No decision on Blackpool FC's potential 12-point deduction was made by the EFL at today's board meeting, it has been confirmed.

Wednesday, 6th March 2019, 6:33 pm
Updated Wednesday, 6th March 2019, 7:42 pm
Blackpool FC's board has been given more time to finalise its review of the club's finances
Blackpool FC's board has been given more time to finalise its review of the club's finances

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Instead, the club's new board has been given more time to review the club's current financial position.

The EFL said: "The board was informed that the EFL executive has now met with the newly appointed members of the Blackpool FC board following the appointment of the receivers by the High Court in February 2019.

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"The EFL board agreed to give the club’s board the opportunity to finalise its review of the club’s current financial position before making a decision on whether the club is to be regarded as being subject to an insolvency event as detailed in Regulation 12.3.

"The EFL will continue to work with the club’s board to finalise this outstanding matter as quickly as is practically possible."

Under EFL rules, the appointment of a court receiver is deemed ‘an insolvency event’, in the same way administration is, and carries the threat of a 12-point deduction.

As it stands, such a deduction would leave the Seasiders two points ahead of the relegation zone.

In an open letter last month, EFL chief executive Shaun Harvey - who is due to leave the organisation at the end of the current season - claimed it is their priority to create "stability" at Blackpool.

He went on to say it is not mandatory to apply the 12-point deduction, but added the circumstances surrounding the appointment of the receiver needed to be fully considered before a decision is made.

The appointment of the receiver was approved by the High Court last month to discharge the football club and its related assets to recoup the £25m Owen Oyston still owes Valeri Belokon.

Oyston and his daughter Natalie Christopher were removed from their roles on the board last week, paving the way for thousands of fans to lift their boycott.