RFL relaxes rules on administration

Clubs that enter administration will avoid a points deduction as a consequence of Covid-19.

League Express can reveal that the RFL has made a change to its procedures that will ensure clubs are not automatically handed a 12-point penalty for going under.

Instead, the RFL board now has the discretion to wipe out the points penalty, citing exceptional circumstances.

The change has been made to recognise the unprecedented situation as a result of the global pandemic, which has left a number of clubs suffering serious financial burdens.

Previously, any club that entered administration would be handed an automatic 12-point penalty with no flexibility. However, the RFL board now has the power to revoke that punishment should they deem it necessary.

It will come as a small piece of comfort for some clubs who are facing the unknown. Playing behind closed doors while paying £5,000 per week for testing is set to leave many clubs in a challenging position, while Championship and League 1 clubs face the very real threat of not playing again until next year, which could result in refunds to season ticket holders and commercial partners.

The RFL’s £16 million loan, which provides further financial assistance to clubs, has yet to be used, though that will have to be paid back.