The Board of the Football Conference has issued the following statement, confirming Scarborough’s relegation to the Conference North and the reasons thereof:

The Board is responsible for maintaining the integrity of the Conference and the Competition and ensuring compliance with its Articles and Rules. This includes ensuring that all 68 Clubs compete on an even playing field, in particular, in relation to financial matters.

For some time, the Board has had serious concerns about the way in which Scarborough has been operated and as to how it will be operated in the future, in particular, in relation to non-payment of Football Creditors (including players, staff, other clubs, the Football Association and the Conference).

It has made these concerns clear to Scarborough on several occasions and reiterated them at a meeting on 16 May 2006, at which Scarborough agreed to provide certain important information that had been requested.

On 31 May 2006, Scarborough provided some of the requested information, some of which was incomplete, unsatisfactory and inadequate and raised further concerns.

On 2 June 2006, the Board was informed that Scarborough had entered into a Company Voluntary Arrangement under the Insolvency Act 1986; its third such arrangement in approximately 6 years.

This followed Scarborough’s exit from Administration on 10 May 2006, in which it had been for more than three years. Scarborough exited Administration only three days before it would have become ineligible for membership of the Conference and would have been relegated for the season 2006/2007 within the National System to be decided by the Football Association to a league lower than Conference North, as provided in Appendix E to the Conference Rules.

On 3 June 2006, the Board again heard from Scarborough and carefully considered matters. It still had serious concerns as to the way in which Scarborough had been operated in recent years and how it was going to be operated during the season 2006/2007. In particular, the Board was satisfied that Scarborough would not be able to properly participate in the National Conference during the season 2006/2007.

Although it was satisfied that it was entitled to and would have been justified in expelling Scarborough immediately, or expelling it at a later date and in the meantime relegating it to the Conference North, in order to give Scarborough a final opportunity to properly put its affairs in order and conduct itself in accordance with the Articles and Rules of the Conference and in order to maintain the integrity of the Conference and the Competition, the Board decided:

1. To relegate Scarborough to the Conference North for the season 2006/2007, under Article 5.3 and/or Rule 4.2; and

2. To deduct 10 points for the season 2006/2007 under Rule 14.

This decision was immediately communicated to Ian Scobbie and Malcolm Reynolds of Scarborough who were specifically referred to Article 5.3 of the Conference’s Articles of Association and Rules 2.11, 4 and 14 of the Conference’s Rules, copies of which they had with them.

The decision was confirmed in the following statement which was read by John Moules to the entire Conference at the AGM, prior to the Conference forming its Constitution for season 2006/2007:

"Having considered a number of matters relating to Scarborough Football Club, including the fact that yesterday, the proposal of Scarborough Football Club Limited of a voluntary arrangement under the Insolvency Act 1986 was accepted by the creditors and members, the Board has decided as follows:

1. Scarborough Football Club is relegated to Conference North under Article 5.3 of the Articles of Association; and

2. Scarborough Football Club will be deducted 10 points under Rule 14 relating to Sporting Sanctions for season 2006/2007.

The decision was subsequently confirmed to Scarborough in writing.

In the circumstances, the Board is surprised by various statements appearing on Scarborough’s website that Mr Scobbie and Mr Reynolds were not given any information about the rule that Scarborough had breached and did not know which rule Scarborough had breached.

Scarborough have until 20 June 2006 to lodge any appeal against this decision with the Football Association

The Board is responsible for maintaining the integrity of the Conference.

Integrity - yeah right.