Thursday, 23 April 2009

Saints linked inextricably with League One

I have been on an intensive three day training session this week (broken only by the Cardiff debacle) looking into company accounts; balance sheets, income statements, cash flows etc. On Tuesday we covered the linkage between businesses; Subsidiaries, Associates and Joint Ventures etc. Our tutor confirmed my view that a wholly-owned subsidiary is dependent upon it's parent company and that the two were "inextricably linked." These were his words and I was immediately reminded of the stunt that Southampton FC have been trying to pull to avoid a ten point deduction and almost certain relegation. A brief conversation followed and he confirmed my view.

Pleasant satisfaction then this afternoon, when he told us after a tea break, that Southampton have been handed a ten-point penalty by the Football League as a result of their parent company, to whom they are "inextricably linked," going into Administration. I heard Lord Mawhinney on the radio on the way home explaining that the Football League were confident that their "forensic" examination of the Saints' books had proven the case.

What annoys me at this point is that the Saints appear to have escaped with a 10 point deduction this year because it effectively relegates them. If they had been down today anyway, then the penalty would have applied to League One next season. The timing of this announcemnet, therefore, looks very fortunate to me because Southampton would most likley have been relegated on Saturday in any event. Still, shouldn't grumble too much I guess, they have had their comeuppance. 

6 comments:

Anonymous said...

I'm sure you now know that the 10 point penalty will apply this season only if Southampton would otherwise have stayed up. If they would have been relegated without the deduction then they will lose the 10 points next season. In other words, Southampton have been relegated whatever now happens, but they have an incentive to get enough points to finish out of the bottom three to avoid beginning next season with a 10 point deduction. Seems very fair to me.

PJ said...

Hopefully the deduction will be applied next season then it'll be at least 4 games before we reach the bottom !

Suze said...

My understanding is, if they're relegated in the general way of things...without the ten point deduction, then the points deduction is moved to next season, and they start with minus ten points.
Having listened to some of the explanations, they seem to have withdrawn co-operation from the investigation towards the end, and are also complaining they had only five minutes prior knowledge of the announcement so couldn't argue their case. If this is true...what did they think they were going to get?!

Anonymous said...

My understanding Dave, is that if they do not accumulate enough points to avoid relegation this season, the ten point deduction is made next season.

If they get enough points to avoid relegation this season, they get the points deducted this season, and thus go down anyway - but don't get a minus ten start next season.

So possibly a first - they are playing games this season that have an impact upon their ststus next season.

Can't we sue them for somehting now - like wearing stripes whilst avoiding debt?

Pembury Addick

Dave said...

Thanks for clearing that up folks. I feel a lot happier as they look certain to start with a ten point deduction next year on that basis!

charlton north-downs said...

Lets face it -what ever way it goes for the Saints its going to be cruel. If they win their last 2 games, which in normal circumstances it could mean they finish fourth from bottom - after the ten points deduction they finish bottom. So to avoid the ten points being carried over to Div 1
they are effectively playing their last 2 matches for 10 points.