EFL standing firm after Wigan appeal decision to be deducted 12 points

Luton held Wigan to a 0-0 draw before the season was postponed due to the coronavirus

The English Football League has hit back at the owner of Luton Town's Championship rivals Wigan Athletic, Au Yeung Wai Kay's, claims that the coronavirus pandemic caused the Latics to file for administration last week.

Au Yeung, who owns Next Leader Fund, took control of the DW Stadium club on June 4, but just under a month later, called the administrators in after being unable to fund the club.

On why that was, Au Yeung, speaking exclusively to Wigan Today, said: "We bought Wigan Athletic with the best intentions: to create a team that would get the club back into the Premier League, and I have invested more than £40million (to buy it and repay a loan to former owners the International Entertainment Corporation).

“Unfortunately, the Covid-19 crisis has severely impacted people and businesses around the world – and Championship football clubs, which rely on fans coming through the turnstiles, are no exception.

“This has fundamentally undermined our ability to fund Wigan Athletic and, after struggling to find a solution, in the end took the difficult decision to put the club into administration to ensure its survival."

Wigan have now confirmed they will appeal the points deduction which would be handed out at the end of the season, with the current league positions seeing them drop to the foot of the table, three points behind Luton, although having played a game less.

Administrator Gerald Krasner confirmed they would be appealing on the grounds of 'force majeure', a term usually defined as certain acts, events or circumstances beyond the control of the involved parties, such as natural disasters, war or a pandemic.

However, a statement from the EFL appeared to pour cold water on the hopes of decision being overturned, saying: "The League fundamentally disagrees with the comments attributed earlier today to Mr Au Yeung Wai Kay where he stated that ‘the Covid-19 pandemic has undermined the ability to fund the Club’.

"Whilst it is clear that Covid-19 has undoubtedly presented significant financial challenges to the professional game, evidence of the required source and sufficiency of funding to be invested in or otherwise made available to the Club, was provided as part of the recent change of control process.

"In respect of the challenges at Wigan Athletic, there is clearly a number of important unanswered questions that require urgent attention and the EFL welcomes the move made by the Administrators to launch an investigation as to what has led to the Club being placed into Administration just a matter of weeks after the Next Leader Fund (NLF) took ownership of the Club.

"The EFL will undertake a similar exercise and, should any breaches of football regulations or company law be discovered, action will be taken either by the League or the body with the relevant jurisdiction to do so.

The EFL understands this situation once again leads to questions being asked about EFL regulations in regard to changes of control, alongside the actions taken when an insolvency event occurs, and as a result has opted to clarify each matter below:

"In all circumstances a sporting sanction applies in respect of an insolvency event (default 12-point penalty).

"The Regulation seeks to ensure that a Club cannot gain any advantage over other Clubs in the competition by not paying its creditors in full and on time, while also ensuring there is a deterrent in place for Clubs and their owners, from operating in a manner so as to cause insolvency.

"The EFL acknowledges it is a difficult time for any Club placed into Administration, particularly in the midst of COVID-19, but is mindful that its regulations are to be applied consistently and equally to all member Clubs irrespective of the circumstances.

"In the current case of Wigan Athletic, and, in accordance with EFL regulations, due to the Club being placed into administration after the fourth Thursday in March, the sporting sanction will take affect once the final League positions are known.

"If in the event the Club is relegated by virtue of their final position following the conclusion of the Championship season, then the deduction will apply in League One in 2020/21.

"However, if the Club is not in the relegation places following the final game of season, the sanction will be then be applied to their season 2019/20 total and final league standings amended as appropriate.

"A Club can appeal against a decision of the Board to impose a 12-point deduction under the EFL Regulation 12.3.10, and the appeal will be heard by an independent panel appointed by Sports Resolutions.

"That independent panel will determine whether the relevant Insolvency Event(s) arose solely as a result of a Force Majeure event, caused by and resulted directly from circumstances, other than normal business risks, over which the Club could not reasonably be expected to have controlled."