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After Newcastle United became caught up in a HM Revenue and Customs (HMRC) tax fraud probe, we look at the rules surrounding points deductions in the English Football League.

HMRC officials were seen at the club’s training ground in Benton and at St James’ Park on Wednesday.

Toon fans have been left worrying if the news of raids at Newcastle United could cost them the move to the Premier League, which was seemingly cemented on Monday when the Magpies beat Preston North End 4-1.

Newcastle currently sit in second place in the table, behind Brighton.

The English Football League said it couldn’t say anything about Wednesday’s raids and the situation remains unclear.

A spokesperson said: “It would not be appropriate for us to comment at the moment as the investigation is ongoing.”

Although the investigation is at an early stage, a precedent has previously been set when clubs have been found guilty of financial irregularities with a points deduction being the outcome.

(Image: 2017 Newcastle United)

What do the rules say?

According to the English Football League’s rules and regulations regarding sporting sanctions, clubs could face point deductions in the case of an “insolvency event”.

The rules state: “If any club becomes subject to or suffers an insolvency event, that club shall be deducted 12 points.

“If a group undertaking of a club becomes subject to or suffers an insolvency event, then the board shall have the power to impose upon the club a deduction of 12 points scored or to be scored in the League competition.”

This would be subject to appeal but the league’s rules say this point deduction is done because of the need to protect the integrity and continuity of the competition and to protect the reputation of the league and the game of football generally.

When would the points be deducted?

The points would be deducted when the club becomes subject to any insolvency action. If this is before the fourth Thursday in March, the deduction is applied straight away. If it is after the fourth Thursday in March, the club will start the next season on minus 12 points.

So could Newcastle be kept in the Championship?

As the team is not facing any insolvency action it is unlikely to see any points deduction at this stage. Of course that may change as the HMRC investigation develops.

The English Football League’s rules do not explicitly say what happens to a club facing insolvency if they were expected to be promoted out of the league, and a spokesperson refused to comment on the issue.

What about the Premier League’s rules?

Again the rules are regarding club’s facing insolvency, which there is absolutely no indication Newcastle United could face.

The rules say that teams could face point deduction or demotion to a lower league depending on their ability to fund the club for the next year or to the end of the playing season following a transfer.

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Last year the Premier League's executive chairman, Richard Scudamore, said he would want to see clubs hit with the 'ultimate sanction - a points deduction' for serious breaches under Financial Fair Play Rules.

With United effectively caught between the Championship and the Premier League, timing would be key if United were handed any points reduction.

However, W.54 of the Premier League rule book does describe a range of punishments that can be handed down by a disciplinary commission and that includes a points deductions and even expulsion from the league.

What has happened in the past?

1989/90: Swindon Town denied a place in the First Division

(Image: archive)

After beating Sunderland in the play-off final to win promotion to the First Division, Swindon admitted 36 breaches of League rules.

Initially their punishment was relegation to the Third Division although on appeal this was reduced to relegation back to the Second Division with Sunderland promoted to the top flight in their place.

2000/01: Chesterfield deducted nine points for financial irregularities

The Spireites finances were called into question with the club being found guilty of two charges relating to the transfer of Luke Beckett from Chester to Chesterfield and the under-reporting of gate receipts.

2002/03: Boston United deducted four points for financial irregularities

(Image: archive)

While in the Conference the Lincolnshire club, their manager Steve Evans and former chairman Pat Malkinson faced a total of 16 FA charges relating to financial irregularities.

The club was found guilty of six of them, relating to irregularities in the contracts with players Paul Bastock, Ken Charlery, Jim Dick, Paul Wilson, Simon Weatherstone and Mike Marsh.

Contract details given to the FA bore no relation to what the club were paying the players - for example the contract with former Liverpool and West Ham player Marsh stated a salary of £100 a week when he actually received £1,000 a week.

2007/08: Leeds United deducted 15 points for breach of financial rules

(Image: archive)

After suffering a 10-point deduction the previous season for entering administration, Leeds United started the 2007/08 season with a 15-point penalty for leaving administration without a Company Voluntary Agreement (CVA).

A CVA - an agreement an insolvent company has with its creditors about what will be repaid and when - was a Football League requirement for a club exiting insolvency and without it Leeds became the first club to suffer the penalty of a 15-point deduction.