I.6 Assessment of future financial information - Club Licensing

I.6.1

In respect of future financial information, the licensor must assess whether or not the licence applicant exhibits the condition as defined in Article 74. If the licence applicant is required to submit future financial information, the licensor may decide:

1. to assess the information submitted by the licence applicant, in which case the licensor must perform the assessment according to Annex I.6.2 below; or

2. to have independent auditors carry out the assessment procedures in accordance with ISRS 4400, in which case the licensor must review the auditor’s report to ensure they performed the assessment procedures as described in Annex I.6.2 below.

I.6.2

The assessment of future financial information must include, as a minimum, the following procedures:

1. Check whether the future financial information is arithmetically accurate;

2. Determine, through discussion with the licence applicant’s management and review of the future financial information, whether the future financial information has been prepared using the disclosed assumptions and risks;

3. Check that the opening balances contained within the future financial information are consistent with the balance sheet shown in the immediately preceding audited annual financial statements or reviewed interim financial statements (if such interim statements have been submitted);

4. Check that the future financial information has been formally approved by the executive body of the licence applicant by way of a declaration by the licence applicant’s management that the documents submitted are complete, accurate and in compliance with these regulations;

5. If applicable, examine corresponding supporting documents, including agreements with sponsors, banking facilities, share capital increase, bank guarantees and minutes of board meetings.

I.6.3

The licensor must assess the liquidity of the licence applicant, i.e. the availability of cash after taking account of financial commitments and its ability to continue as a going concern until at least the end of the licence season. The licence must be refused if, based on the financial information that the licensor has assessed, in the licensor’s judgement, the licence applicant may not be able to meet its financial commitments as they fall due and continue as a going concern until at least the end of the licence season.