UEFA’s new competition regulations require Girona and Manchester City to demonstrate by June 3 that they are complying with the timeshare rule, to eliminate a potential conflict of interest and prevent any natural or legal person to have control or “influence” and the next Champions League together.
A document from the UEFA Club Financial Control Committee (CFCB) explains the timeshare rule (MCO) contained in article 5 of the competition regulations; and points out that if there is doubt about its compliance, the case will be studied by this body, which will decide on the entry of the clubs involved in the competitions.
Rights of shareholders or partners
It establishes some clarification on the definition of “decisive influence” according to four criteria: through the rights of shareholders or partners; through financial support; by management; or by transferring the player. Aspects, so that the clubs involved can play the same competition, such as Girona, owned by the City Group.
The CFCB considers decisive influence through shareholder rights if a party owns 30% or more of the club’s total shares, the voting or economic rights of shareholders or members.
Also if a party owns 10% or more of the total shares of the club, the voting or economic rights of shareholders or members and is also the largest shareholder of the club.
Influence is understood as financial support if a part represents 30% or more of the club’s total operating income; if it lends an amount equal to 30% or more of total loans to related parties; whether it provides you with financial support in the form of additional paid-up capital or a financial guarantee on loans.
Decisive influence through management refers to the presence in the governing bodies of one of the parties and its decision-making capacity, or having 30% or more of economic voting rights.
And the section referring to player transfers states that for the avoidance of doubt, clubs subject to MCO procedures before the First Chamber of the CCFB do not have the right to transfer, permanently or temporarily, new players between them, directly or indirectly through related players. party, during the competition or in the first transfer window immediately afterwards.
If one or more of these indicators are activated, the First Chamber of the CFCB considers that a party has the capacity to exercise a decisive influence on the decision-making of a club, indicating that one will be removed from competition.
Temporary exception for next season
However, UEFA is considering a temporary and extraordinary alternative only for next season in case of non-compliance with the last three indicators, due to the short time frame between the approval of the competition regulations and the date of June 3 .
According to the document, “the said alternative would consist of transferring or assigning all of its shares to a club to an independent third party, such as a blind trust, where all club decision-making would fall solely to control by the third party/trustee, who will be bound by a fiduciary duty to act exclusively in the best interests of the club.”
“It is understood that, in these cases, the First Chamber of the CCFB will oversee the creation of an independent structure to ensure that it complies with the MCO criteria,” he added, while pointing out that the indicators could be reviewed in the future that time. in accordance with the possible evolution of the MCO rule in the next editions of its regulations for participation in its club competitions.
Source: La Verdad
I’m Rose Herman and I work as an author for Today Times Live. My expertise lies in writing about sports, a passion of mine that has been with me since childhood. As part of my job, I provide comprehensive coverage on everything from football to tennis to golf.
