Bolton Wanderers join long list of clubs who have been in administration

But what can we learn about the weeks and months ahead from the stories of other teams who have suffered the same fate?

Chief football writer Marc Iles looks over the last 15 years of insolvency in football and whether there are some lessons to heed.

ENTERING into administration is a whole new ball game for Wanderers.

In an ideal world, the process will allow the business to breathe and recover without the threat of liquidation. Given the last few years at the University of Bolton Stadium, however, fans could be forgiven for expecting a few more twists and turns.

Since 1984, 43 different professional football clubs have gone into administration, some on more than one occasion.

Some, like Leeds United in 2007, managed to shrug off points deductions and still make the play-offs. Others have found hidden problems are uncovered and that the damage can last for several years.

The EFL have already confirmed that Wanderers will start next season with a 12-point deduction – a sanction introduced in 2015 by the EFL at its summer AGM.

There had been no penalty at until the start of the 2004/5 season when all Premier League and Football League teams passed new regulations on insolvency.

Such events became rather commonplace after the crash of ITV Digital in 2002 – a year which saw a record high 10 clubs hit the wall and declare themselves insolvent.

Fearing that rules were being manipulated and that some clubs were entering into administration simply to shed debt, deterrents were introduced – nine points for a top-flight side, and 10 for those outside, as they played fewer matches.

The first club to fall foul was Wrexham, who entered into administration in December 2004 with debts of around £2.4million. The 10 points proved too much to claw back, and they were relegated in 22nd position, eight points off safety.

Cambridge United were also hit that season, filing six days after their relegation from League Two was confirmed in 2004/5 over liabilities of around £900,000.

They returned to the Football League in 2014, also winning the Football League trophy, and finished 21st in the table this season.

By the end of the 2006/7 campaign another loophole was closed, with clubs now unable to wait to see if they are relegated before triggering administration.

Leeds United did just that – six seasons after they were Champions League semi-finalists – dropping out of the Championship when their fate was already sealed.

Boston United flouted the rules even more flagrantly, going into administration before the final whistle of a must-win game against Wrexham on the final day.

From there on in, if administration was not triggered by the fourth Thursday in March the points would be deducted from the following season.

Rotherham United suffered two sets of punishments in 2006/7 and 2007/8, the second of which was extended to 17 points after failing to exit administration according to league rules.

The Millers could serve as inspiration for Wanderers as they managed to achieve respectable finishes – ninth and 14th – in both campaigns.

Leeds United also came out of admin without a CVA (Company Voluntary Agreement) in 2007 and incurred a 15-point penalty. But after winning their first seven games and going unbeaten in 13, the Elland Road men were able to clinch a play-off spot in League One – albeit they were beaten by Doncaster Rovers in the final.

Bournemouth and Luton Town dropped out of League One in 2007/8 after 10-point deductions. But things would get worse the following season for both clubs – Bournemouth docked 17 for failing to agree a CVA and Luton an astonishing 30 for the same breach, along with extra punishment for irregular payments. The Hatters were relegated to the Conference, while Eddie Howe’s Cherries lived to fight another day, beginning their heart-warming, if well-funded climb towards the Premier League.

Darlington would also have made the League Two play-offs had they not entered into administration in February 2009 for the second time in six years. Sadly for the Quakers they never recovered and slid into the non-leagues.

A couple of months later Stockport County also appointed administrators over debts worth around £550,000 to creditors including HMRC. The Hatters did manage, however, to avoid relegation by a single point, finishing 17th that season in League One.

Southampton argued that they should not be deduced 10 points when their holding company, Southampton Leisure Holdings plc, went into administration in April 2009.

Unfortunately for the Saints – and Wanderers, who could state the same in their own situation a decade later – the Football League deemed that the company was 'inextricably linked as one economic entity'. The punishment was dished out a season later, which left the team agonisingly just a point outside the play-offs.

Simon Jordan and Neil Warnock at Palace

Crystal Palace went the same way in January 2010 as debts of £30million racked up under Simon Jordan’s ownership.

Neil Warnock’s side had been in play-off contention before the 10-point deduction but ended up needing a point against Sheffield Wednesday on the final day of the season to protect their Championship status. The process also meant selling highly-rated youngster Victor Moses to Wigan for £2.5million.

It is the story of Portsmouth which might contain the most relevant details for Wanderers – the Fratton Park men plunging down the divisions in spectacular fashion amid a queue of rogue owners, legal action and fire sales to avoid liquidation.

Portsmouth became the first-ever Premier League club ever to enter into administration, reporting debts of around £135million at the time they pressed the button on February 26, 2010, a couple of months before appearing in the FA Cup final. The nine-point penalty ensured relegation – but there would be much worse down the line for Pompey as they dropped into the bottom tier within four seasons.

A second administration followed in February 2012 with Trevor Birch admitting the financial position at the club was “far worse than first feared” and that Pompey were “struggling to make the end of the season” as they dropped out of the Championship.

The South Coast club’s decline accelerated and after releasing their entire first team squad they started 2012/13 with a 10-point penalty. The first game of the season saw Michael Appleton name nine teenagers in his line-up.

The Pompey Supporters’ Trust launched a bid to buy the club but were unable to affect the 2012/13 campaign, in which Portsmouth were relegated for the second successive season after another 10-point penalty for leaving admin through a CVA that was not fully compliant with the Football League’s insolvency policy.

It was not until September 2014 that the Pompey Trust finally announced they had cleared historic debts and had a clean slate. Five years later they made the play-offs in League One.

Peter Reid was in charge at Plymouth Argyle in 2010/11 as they went into administration and dropped into League Two with debts of around £3million owed to HMRC.

Port Vale were docked 10 points in March 2012 which ended any hopes of them reaching the play-offs in League Two that season. Staff and players had been paid just 25 per cent of their wages and a six-figure fee was owed to the tax man.

Coventry City’s subsequent ownership problems are another cautionary tale for Wanderers.

The Sky Blues were docked 10 points in 2012/13 and another 10 the following season when they failed to reach a CVA with their creditors – namely ACL, the company which ran their Ricoh Arena home.

Current Wanderers joint-administrator Paul Appleton was involved as special dispensation was granted for the club’s share in the EFL to be transferred to another company, Otium Entertainment Group, preventing them from being expelled from the league altogether.

Fans were left upset, however, as Otium was related to the company which put them into administration and continued to operate under the name of SISU.

After being forced to play their home games at Northampton 34 miles away the situation shows continues to be a serious threat to the club’s future.

Wasps Rugby Union club took over the stadium from the City Council but are now at odds with SISU over its valuation, the case having recently been heard at the Supreme Court. The net result is that Coventry and currently unsure if they will have use of the facility next season.

Before Wanderers, Aldershot were the last EFL club to go into administration, although it was only filed once defeat to Rotherham had ensured their relegation to the conference in 2013.