Wigan relegated from Championship after losing appeal against 12-point deduction

Wigan Athletic have been relegated from the Championship after losing their appeal against a 12-point deduction for entering administration.

The Latics dropped down to League One after the 12-point penalty was applied on the final day of the season, with then-manager Paul Cook and his players two points adrift of safety.

Wigan's administrators had hoped to overturn their punishment given the extraordinary circumstances surrounding their administration, with owner Au Yeung Wai Kay plunging the club into insolvency measures shortly after completing a takeover from fellow Hong Kong businessman Stanley Choi's International Entertainment Corporation.

But the EFL announced on Tuesday evening that an independent arbitration panel had dismissed Wigan's appeal and that their relegation to the third tier of English football will stand.

In a statement, the EFL said: “An independent arbitration panel has ruled that Wigan Athletic’s 12-point deduction for entering administration last month will stand after dismissing the club’s appeal against the sporting sanction.

“The insolvency event occurred on the 1 July 2020 and under EFL Regulation 12.3, the club was subject to a 12-point sanction; yet the timing of the deduction could only be determined once the final games of the season had been played.

“The reason for this approach was due to the administration taking place after the fourth Thursday in March. In such circumstances EFL Regulations state that, in the event a club is relegated by virtue of their final position following the conclusion of the league campaign, then the deduction would apply in the following season.

“As the club was not in the relegation places following the last round of Championship fixtures, the sanction was then applied to their 2019/20 total which resulted in a 23rd placed finish.

“In cases of insolvency, the panel does not determine the timing of the sanction as it can in independent disciplinary proceedings. The decision of the arbitration panel is final and legally binding.

“The EFL will continue to engage with the administrators to provide its full support in all ongoing matters with the aim of achieving a long-term future for the club.”

Wigan's administrators estimated last month that the appeal process would cost the club at least £400,000 win or lose.

The appeal was held on Friday where, in a five-point statement, it was revealed that one of the administrators, Gerald Krasner, held an hour-long video meeting with owner Au Yeung as part of their investigation into the club's situation.

Joint administrators Krasner and Paul Stanley both gave witness statements and were cross-examined by the tribunal.

The administrators remain in talks with bidders over the sale of the club after negotiations with their preferred bidder broke down. Cook resigned as manager last week, announcing that he did so with "a heavy heart".

Additional reporting by PA