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New Financial Rules Introduced


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#1 Louis

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    Dixie Dean

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Posted 15 Sep 2009 - 10:56

http://www.premierle...1797644,00.html

All 20 Premier League members have agreed to adhere to a set of regulations designed to protect the viability and sustainability of the clubs.

These rules will be introduced to give the Premier League, the FA and UEFA the assurance that the clubs can complete competition commitments throughout a season.

All components of income and expenditure will be included in these assessments. These rules will be applied from this season onwards.

Clubs must submit independently audited accounts to the Premier League by 1st March each year with requirements to note any material qualifications or issues raised by auditors.

There will also be a requirement for clubs to submit future financial information to the Premier League by 31st March each year. This will act as an improved early warning system should any club take undue financial risks which may have consequences for future financial stability.

Clubs will also have to demonstrate to the Premier League Board that they do not have outstanding debts to other clubs.



Contractual Obligations

And there will be an annual requirement to demonstrate to the Premier League Board that a club is not in debt with regard to income tax or National Insurance and payroll taxes.

Premier League chief executive Richard Scudamore said: "Clubs will all have to annually submit accounts and future financial information.

"At all times the board of the Premier League will be applying a test which basically says this: can the club fulfil its fixtures, pay off its creditors when they are due and also to meet obligations to the Premier League's contracts and partners?

"If the board believe a club is at risk of not meeting those obligations, it has to then step in and agree a budget for the running of that club. Any transfers could be embargoed.

"It's absolutely crucial that these clubs are run as ongoing viable concerns. These financial rules apply immediately.

"At our club meeting last week, the clubs absolutely endorsed our position of not linking expenditure to income."

These rules are to ensure that Premier League football clubs can meet their obligations throughout a season including being able to fulfil all fixtures; fulfil contractual obligations to the Premier League and demonstrate that they can meet all payments due during a season.

Any qualification raised in accounts or risk seen by the Premier League Board could result in action to help prevent a club from exposing itself to financial difficulties that may be deemed unsustainable or put at risk the future financial sustainability of a club.

Clubs that fall into such financial difficulty could be subject to financial controls relating to transfer activity and/or player salaries.



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#2 iggy

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    Trevor Steven

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Posted 15 Sep 2009 - 12:13

That should get a few sphincters twitching!
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#3 nobbyblue

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Posted 15 Sep 2009 - 13:27

That should get a few sphincters twitching!



Not at all.

Because of this bit.

All 20 Premier League members have agreed to adhere to a set of regulations designed to protect the viability and sustainability of the clubs.


It's strictly done to look good to the fans living in a real world where salaries are per year, not per week. If there were real penalties for overpaying salaries and running in huge debt, there would NEVER have been 20 'ayes'
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#4 iggy

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Posted 15 Sep 2009 - 13:34

It all depends on how creative the various clubs accountants can be, I have no doubt that there will be some distinctly shady practices brought to light in the not too distant future.
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#5 Louis

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Posted 15 Sep 2009 - 13:42

When they are uncovered, they are generally ignored. Did you know for example that Derby's former directors are in prison?
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#6 iggy

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Posted 15 Sep 2009 - 13:47

Knew that Louis, and they are doing time for offences uncovered after an audit so it's hardly being ignored, although it did take a fair amount of time to get to court in the first place
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#7 nobbyblue

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Posted 15 Sep 2009 - 14:03

I think very few of the super rich haven't stepped on more than a few toes and broken more than a few rules. Financial discrepencies being the least of it!
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#8 Adpom

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Posted 15 Sep 2009 - 15:02

Roman's accounts have alot of sneaky ways i'm sure, after all he was a nobody in the russian oil circles, till the USSR collapsed an suddenly he got laods of cash 2 buy the oil wells
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#9 CaptainFerguson10

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Posted 15 Sep 2009 - 15:36

The rich and powerful clubs will always dodge the rules, only clubs like Everton will suffer as always.
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