Thursday 07 February 2013
With the Premier League clubs having agreed in principle to enhanced financial regulations, find below the background to this latest development.
A number of Premier League clubs expressed a desire to consider adding to the financial regulations already in place in the PL Rule Book at the last Annual General Meeting in May 2012.
The Premier League Executive was tasked with drafting proposals that covered a Profitability and Sustainability and Short Term Cost Control.
All 20 Premier League clubs and the League Executive discussed and debated different regulatory options at six separate meetings including:
May 2012: Premier League AGM
September 2012: Premier League Shareholders' Meeting
September 2012: Regional club meetings specifically re: financial regulation
November 2012: Premier League Shareholders' Meeting
December 2012: Club meeting specifically re: financial regulation
February 2013: Premier League Shareholders’ Meeting
The Premier League and its clubs have a track record of meeting key governance challenges with enhanced regulation. In recent seasons this has included the introduction of the following Premier League rules:
HMRC reporting: Quarterly evidence that Clubs are up-to-date with HMRC payments. And each club will give HMRC permission to share directly with the PL Board details of any non-payment of PAYE or NI (approved June 2010).
Change of control: Prospective new owners must provide evidence of sources and sufficiency of funds for an acquisition. And a business plan that proves they can sustain club for following 12 months (approved June 2010).
Owner's and Director's Test (ODT): Unspent conviction resulting in 12 months imprisonment bars person from a directorship. Any dishonesty conviction bars person from a directorship. In addition to Company Law regarding directors. (ODT renamed from FAPPT and strengthened – approved June 2010).
Financial disclosure: All Clubs must provide Future Financial Information (FFI) showing they can meet all liabilities that fall due for 12 months ahead (approved September 2009).
Ownership transparency: Public declaration of shareholders with 10% shareholding (approved September 2009).
Publication of Agent's Fees (agreed June 2008).