cbwhu
Winger
yep -is that an EFL rule?
5.4 A Related Party Transaction is a transfer of resources, services or obligations between Related Party(ies), regardless of whether a price has been charged.
5.5 A Related Party Transaction may, or may not, have taken place at fair value. Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing parties in an arm’s length transaction. An arrangement or a transaction is deemed to be ‘not transacted on an arm’s length basis’ if it has been entered into on terms more favourable to either party to the arrangement than would have been obtained if there had been no Related Party relationship.
any transaction not done at fair value is punishable, this would appear to fall under that
here;s the whole sectionif you can be bothered
APPENDIX A - Transactions with Related Party(ies)
1 Introduction
1.1 Having set a limit on the amount of Contributions from Equity Participants and / or Related Party(ies) it is important that the principle is not undermined by other arrangements with Related Party(ies) which are other than for fair value.
2 Disclosure
2.1 If there have been transactions between Related Parties during a Reporting Period, the Championship Club must disclose the nature of the relationship with the Related Party(ies), as well as information about those transactions and outstanding balances, including commitments, necessary for an understanding of the potential effect of the relationship on the Accounts.
2.2 If under FRS 8, the Championship Club is not required to disclose such transactions with Related Party(ies) within the notes to the Accounts, the transactions should be detailed in a separate schedule attached to the Fair Play Calculation as described in Appendix G Part 1.
2.3 Items of a similar nature may be disclosed in aggregate except when separate disclosure is necessary for an understanding of the effects of Related Party Transactions on the Accounts.
3 Principle of Adjustment
3.1 Where any element of profit / loss before tax relates to any transaction(s) with Related Party(ies) above or below fair value then, for the purpose of the Fair Play Result, the Championship Club must determine the fair value of any Related Party Transaction(s). If the estimated fair value is different to the recorded value then an appropriate adjustment must be made in calculating the Fair Play Result, bearing in mind, however, that:
3.1.1 no upward adjustments can be made to income; and
3.1.2 no downward adjustments can be made to costs / expenses.
4 Examples of Related Party Transactions
4.1 Examples of Related Party Transactions that require a Championship Club to demonstrate the estimated fair value of the transaction include, but are not limited to:
4.1.1 sale of sponsorship rights by a Championship Club to a Related Party;
4.1.2 sale of corporate hospitality tickets and / or sale of the right to use of an executive box, by a Championship Club to a Related Party; and
4.1.3 any transaction with a Related Party whereby goods or services are provided to a Championship Club.
4.2 Examples of Related Party Transactions that must always be excluded from income are:
4.2.1 monies received by a Championship Club from a Related Party as a donation; and
4.2.2 settlement of liabilities on behalf of the Championship Club by a Related Party.
4.3 In effect, contributions from / savings in relation to a Related Party will be treated as Contributions from Equity Participants / Related Party(ies) as further described in Appendix F.
5 Related Party, Related Party Transactions and Fair Value of Related Party Transactions
5.1 A Related Party is a person or entity (or any Associate of that person or entity) that is Interested in the Championship Club (or any member of the Group that is included within the Accounts lodged in accordance with these Rules).
5.2 Interested and Associate shall have the meanings as ascribed to them in Regulations 105.2 to 105.4 inclusive and 106.1 of the Regulations. Regulation 105.5 (holdings of 10% or less held for investment purposes only to be disregarded) shall not apply for the purposes of these Rules.
5.3 In considering each possible relationship, attention is directed to the substance of the relationship and not merely the legal form.
5.4 A Related Party Transaction is a transfer of resources, services or obligations between Related Party(ies), regardless of whether a price has been charged.
5.5 A Related Party Transaction may, or may not, have taken place at fair value. Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing parties in an arm’s length transaction. An arrangement or a transaction is deemed to be ‘not transacted on an arm’s length basis’ if it has been entered into on terms more favourable to either party to the arrangement than would have been obtained if there had been no Related Party relationship.
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