However, in April 2009, the Football League set its own precedence when they ruled that Southampton Football Club should be deducted points after their Holdings Company collapsed. The League's logic at the time was that "the company (in administration) and the football club are inextricably linked as one economic entity". In a statement the League said of the Saints' financial position:
"The holding company has no income of its own; all revenue and expenditure is derived from the operation of Southampton Football Club and the associated stadium company. The holding company is solvent in its own right. It only becomes insolvent when account is taken of the position of Southampton football club and the other group companies."
On that occasion, it took the Football League a total of 23 days to reach a decision on Southampton's finances, sending in a team of forensic accountants to determine whether they should be deducted points, with Southampton claiming the two companies were operationally independent. The League ruled otherwise, and invoked the 10 point penalty. It would not be a great surprise if they have to tread down the same path again with the Sky Blues.