Championship Teams Consider 'Nuclear Option' of Group Administration to Avoid Financial Strain

​Officials in the Championship are mulling over the idea of all 24 clubs going into administration in a bid to avoid further financial ramifications, before club owners buy back the clubs at a later date.

This radical proposal would spark a total recalibration of the second tier and English football as a whole, but is being discussed as clubs harbour fears of financial ruin.

Swansea City v Cardiff City - Sky Bet Championship

Referred to as the 'nuclear option', news of this considered approach comes courtesy of the ​Daily Mail, as they reveal clubs in the ​Championship are growing concerned over the struggles of football being postponed, with player wages a key factor.

In order for this option to come to fruition, all 24 clubs must agree to be placed into administration on the same day. It would require huge levels of trust and would result in staff being temporarily let go and entire playing squads being made free agents.

For the plan to work, club owners would then need to buy their respective clubs back and renegotiate new contracts for non-playing and playing staff - thus resulting in an entirely new calibration of English football. This would mean clubs such as Middlesbrough - who have 1986 in their name - would re-form with 2020 in their company title.

Such an extreme proposal comes with significant risks.

Firstly, some form of agreement would need to be in place for clubs to not poach opposing players, something they could, in theory, do as they would be free agents and open to join other sides. Secondly, another agreement would need to be arranged surrounding the eventual ten-point deductions each team would face. The administrative penalty would need to be scrapped unless every club is in correspondence.

Huddersfield Town v Fulham - Sky Bet Championship

Furthermore, a potential players' strike could occur as there are rules that govern the payment of football creditors which comes into effect when administration takes place. How club staff would respond is another matter, as relationships between company and employee would be strained as a result of such a drastic movement.


Equally, there are implications that extend beyond just the clubs and their staff, as elements of club finance, debt and ​Premier League solidarity payments would also be placed at risk. Clubs would also need to re-apply to the Football League.


The fact such an option is being discussed signals an element of panic among lower league officials, and its ramifications could be huge. However, it is by no means the primary focus at present, and hopes remain that this current predicament remains only temporary.


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Source : 90min