UNBELIEVABLE NEWS; Leicester city are bringing him back finally…

UNBELIEVABLE NEWS; Leicester city are bringing him back finally…

Premier League clubs will meet on Tuesday to discuss changes to the top flight’s financial rules in the wake of a legal challenge by Manchester City.

Clubs, including Leicester City, will consider how to include shareholder loans within the league’s associated party transaction (APT) rules, after an arbitration panel said the rules breached competition law because they excluded such loans.

Tuesday’s meeting is the first gathering of all clubs since the panel judgement was published on October 7.

The Premier League has sought clarification from the arbitration panel over the implications of its judgement, but in the meantime is pressing on with addressing the aspects of the rules the panel said were unlawful.

The APT rules seek to ensure commercial deals between clubs and entities linked to their ownership are done at fair market value (FMV), to avoid such deals being artificially inflated to boost revenue.

Clubs were asked to supply information to the league by October 10 about the mix of shareholder loans and loans converted to equity they currently have, and have had in the last three years.

The understanding among clubs is that only new shareholder loans could be assessed for FMV, rather than existing ones. An FMV assessment might look at what rate of interest would be charged on such a loan in the open market, which could vary from club to club depending on their credit score.

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