Football Federation Australia today determined that Octagon Sports Limited, owners of the New Zealand Knights Football Club, had breached their Club Participation Agreement for the Hyundai A-League and as a result have had their licence revoked.
The breach was due to an insolvency event as defined in the Club Participation Agreement.
The licence has now been returned to the FFA who have reached agreement with New Zealand Soccer to manage the football team’s operations for the remainder of the 2006-07 Hyundai A-League season.
This will ensure that the New Zealand Knights will play all their scheduled matches for the remainder of the season.
The FFA has been in contact with the Knights players and ensured them of their contracts until the end of the current season.
All Whites coach Ricki Herbert will assume the head coach position at the Knights immediately.
“The action that we had to take today is disappointing as the FFA has gone to great lengths since the commencement of the league to support Octagon Sports Limited who currently owe the FFA in excess of $AUS800,000,” said FFA Head of Operations Matt Carroll.
“In this context, it is disappointing that Octagon Sports Limited should suggest today that their viability is dependant on a relatively small scheduled grant being withheld by the FFA as a result of Octagon Sports Limited’s long-term, multiple, serious Participation Agreement breaches.”
“The action that the FFA has taken is in the best interests of the Hyundai A-League, the team, the players and football in New Zealand.”