30 May 2012
Tougher Financial Fair Play Rules Introduced
All 12 SPL clubs met today at Hampden Park to consider a number of different matters relating to newcos and financial fair play.
It was agreed that, in future, any decision on the transfer of a share to a newco from any club will be considered by all member clubs, rather than the SPL Board, with flexibility to impose sanctions appropriate to each individual circumstance. The resolutions proposing fixed penalties on a newco were therefore withdrawn as being obsolete.
Following the circulation to creditors of CVA proposals, the SPL Board withdrew the resolution to consider a transfer of Rangers FC SPL share to a newco. No newco proposal is currently under consideration by the SPL.
The following resolutions were also approved by the Clubs and come into effect immediately:
- An increase in the sporting sanctions for any Club going into administration in the future, from ten points to the greater of ten points and one third of the Club's SPL points total in the preceding season;
- An extension of the sporting sanctions regime to the situation where the parent company of an SPL Club goes into administration;
- Updates and extensions to the definition of 'Insolvency Events' in the SPL Rules to track recent changes in insolvency law;
- Specific requirements for SPL Clubs to pay their players and HMRC on time and be subject to sanctions if they do not. Clubs must also report to the SPL any failure to pay players or HMRC on time.
The members' resolution to amend SPL voting rules to an 9-3 vote in all cases was adjourned to the SPL's Annual General Meeting on 16 July.
SPL Chief Executive Neil Doncaster commented: "The new rules will impose more onerous sanctions on clubs which go into administration in the future. By making any failure to pay players on time a disciplinary issue, the SPL has sent a clear signal of the vital importance of clubs living within their means. Equally clubs which fail to live within their means will be punished proportionately.
"And, if clubs do not keep up to date with their PAYE and NIC, they will be made subject to a player registration embargo until they are up to date.
"This is a progressive and bold package of changes, for which clubs should be congratulated."