Is Minus 15 the least we can expect?

With the Millers still in administration and looking for the Football League approval for their move to Don Valley Stadium, it looks as if another big cash blow is set to hit the club.

The statement just released by the FL is as follows:-

ROTHERHAM UNITED

Preliminary information was received from a new company that wishes to take Rotherham United's place in League 2.

The new company has not yet submitted a complete application to The League, although it has indicated that it would wish to play the club's matches at the Don Valley Stadium in Sheffield.

To assist the new company in completing its application, the Board decided to remind it that a club is ordinarily required to play its matches in its existing town. Clubs can be permitted to play in other locations on a temporary basis while a new ground is being built or developed.

In Rotherham United's case, if the new company were to confirm an application to play elsewhere on a temporary basis then before giving permission the Board would require it to agree to return to Rotherham within a period of four years and also to lodge an irrevocable bond of £750,000.

The new company is also reminded that all football creditors must be paid in full. In Rotherham's case, the Board was told that this includes an outstanding debt to the Football Stadia Improvement Fund.

The new company would also be required to determine its proposed course of action before the start of the coming season. In the event that the Board receives a complete application from the new company it reserves the right to impose further conditions.

David_R the messageboards resident insolvancy expert summed up the statement and what it means for the club in 3 bitesize parts.

The move to DVS is not formally approved (that's not that big a surprise, because it's not been formally asked for). For the FL to approve that, the club most lodge £750,000 with the FL (presumably to be forfeit if the club is not back in Rotherham inside 4 years).

The club has not yet achieved or failed to achieve a CVA, so the golden share has not yet transferred. As we know, we have to pay all football debts in full. For clarity, included within football debts are all sums due to the Football Stadia Improvement Fund (£?). That's basically restating what we already knew, so presumably doesn't change anything.

If we don't get a CVA, the FL have reserved the right to deduct any number of points. In Luton's case, because they'd been in trouble before, that meant a 20 point deduction.

Is 15 points the least we can expect given our circumstances???? Can the new owners find the £750k bond?? Keep tuned to the saga that is Rotherham United.

Meanwhile, Luton have received a minus 20 point penalty for 3 admins in ten years while Bournemouths case has been deferred.