on 19th January, the Conference clubs were facing a hefty legal bill as a
result of Exeter City's challenge to a number of issues effecting it following
the clubs decision to go into voluntary administration earlier in the season.
The Conference has now backed down as
reported at Confguide in order to avoid a situation where several clubs
existence was threatened by bills potentially as high as £35,000 per club to
defend the action taken by Exeter City.
Exeter have repeatedly stated that their position was being held because of a
challenge by the Inland Revenue to the different treatment football clubs in
administration treat other football creditors to non-football creditors. It has
been the practice that "footballing" bills are settled 100% while
non-football related creditors settle for reduced amounts agreed under the
The Revenue appear to have decided that getting 10% of what they were owed by
Exeter City under the CVA was not acceptable and launched a legal challenge to
the practice. Exeter then challenged the Conference over its insistence that
football creditors needed to be paid in full.
What upset fans around the Conference most was that Exeter City also
challenged the rule agreed in the close season by Conference clubs that a sporting
sanction of originally 12 points would be applied to clubs entering into
administration to negate the advantage gained by clubs under such arrangements.
Exeter City insisted that this was just a side issue, however they have
continued to insist on this being part of the action and the Conference have
also been forced to back down on this.