Trying to get clubs to operate within their means

3:23pm Thursday 17th July 2008

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TWO talking points this week in football have been the Ronaldo issue at Manchester United and his proposed transfer to Real Madrid and the 30 point deduction from Luton Town.

The Ronaldo episode is one with great significance for football in general.

Here is a player who freely entered into a five-year agreement just a year ago.

Because he was prepared to commit himself for so long he was handsomely rewarded with a massive pay rise.

Undoubtedly he is one of the best players in the world and it is understandable why Real Madrid would like to sign him.

But if he is allowed to get what he wants and break his agreement with Manchester United then it will have far reaching implications.

The whole reason for contracts is a binding agreement between two willing parties.

Clubs cannot rid themselves of players who have failed to live up to the amounts they are being paid without a mutual agreement. Why then should a player be allowed to leave without the blessing of the club who are paying him obscenely vast amounts of money each week?

FIFA President Sepp Blatter has added fuel to the fiery debate by likening modern day footballers to slaves. For someone in such a high-profile position I wonder sometimes whether he engages his brain before opening his mouth.

I have sympathy with Luton Town supporters who have seen their club condemned to a relegation battle next season. It will take nothing short of a miracle if they are to survive as a League club after the FA and Football League deducted 30 points for the coming season.

The punishment seems harsh but in reality it gives them an opportunity to totally restructure the club and return to a financially viable position.

The reason for the deduction was twofold. The FA have punished them by docking 10 points for the payments to agents against FA rules, while the League have deducted 20 points for going into administration, the third time in 10 years, and failing to agree with their creditors, through a CVA, a settlement of debts.

The punishment could have been far worse. Luton Town no longer exist, therefore they cease to be a member of the Football League. A new club Luton Town 2020 has now been formed with the possibility that they could have been thrown out of the Football League starting again lower down the football pyramid.

I can understand the Football League stance; it is an effort to get clubs to operate within their means. A lot of clubs, we being one of them, went into administration or a CVA enabling them to wipe out their debts; an advantage over more responsible clubs were who were run responsibly and met their commitments in full.

The introduction of sporting sanctions, i.e. points deduction, was designed to focus attention on finance.

Leeds have been the prime example of what can happen and now Luton, among others, are having to live with unwise spending policies from previous boards of directors.

The penalty is harsh but a deterrent had to be found.