8 Apr 2010Football League clubs in debt 'should be relegated'

Football Finance News | Football Leagues/ Association and Governance

Outgoing Football League chairman Lord Mawhinney has said clubs must do more to balance their books and suggested that the body should have the power to relegate sides who cannot pay off their debt.

In a farewell letter to England's 72 professional clubs outside the top flight, Mawhinney proposed the introduction of a "fit to trade" framework to help tackle the indebtedness of some teams.

He wrote: "Failure to remain within it might even lead to strengthening sporting sanctions. Personally, I would prefer relegation to a lower division rather than a points deduction."

Mawhinney said that while the Football League's profile had been raised markedly over his seven-year term, "many challenges" lay ahead for successor Greg Clarke. He called on the league to improve the "moral strength of the brand".

Last month, the chairman said in an interview with the BBC that a players' salary cap was "inevitable" if football clubs were to rein in their arrears, describing the current model as "broken".

Written by Terry Mitchell

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