SPL reconstruction: Proposals and punishments explained

AFTER the SPL being blamed for the delays at Rangers, we outline what the body are planning.

On 30 April 2012 the SPL clubs will consider a range of proposals to amend the Articles and Rules of the SPL. A brief description of the effect of adopting the resolutions is provided below.

• Resolution 1 proposes an increase in the sporting sanction (points deduction) on any club which suffers or is subject to an Insolvency Event from ten points to the greater of 15 points and 1/3 of the club’s SPL points in the preceding season.

• Resolution 2A proposes further sporting sanctions in the event that any club undergoes an Insolvency Transfer Event (ie transfers its share in the SPL to a new company where this occurs because of the insolvency of the transferor) of ten points in each of two consecutive seasons from the Insolvency Transfer Event.

• Resolution 2B proposes revisions to the fee payment arrangements, ie SPL fees to any club which has undergone an Insolvency Transfer Event will be reduced by 75 per cent in each of three consecutive seasons from the Insolvency Transfer Event.

• Resolution 3 proposes extending sporting sanctions where an Insolvency Event is suffered by a Group Undertaking of a Member Club of the SPL (Group Undertaking is defined in Section 1161(5) of the Companies Act 2006).

• Resolution 4 proposes updates and extensions to the definition of Insolvency Event in the SPL Rules.

• Resolution 5 proposes updates and extensions to the definition of Insolvency Event in the SPL Articles and clarifies the process in the event that a Member which is the subject of an Insolvency Event is required to transfer its share in the Company.

• Resolution 6 proposes a specific requirement in the SPL Rules that clubs must pay their players in terms of their Contracts of Service on due dates and places a duty on any club to report any failure to pay its players in a timely manner to the SPL. Failure to pay Players and/or to notify such failure to the SPL would be a breach of SPL Rules.

• Resolution 7 proposes a requirement in the SPL Rules that clubs report to the SPL any failure to make payments to HMRC in respect of PAYE and NIC (a Default Event). Any club suffering such a Default Event will be subject to a Player Registration Embargo. Any failure to report a Default Event shall be a breach of the SPL Rules.

• Resolutions 2B and 5 require the support of a minimum of 11 clubs to be adopted; all other resolutions require the support of a minimum of eight clubs to be adopted.

• If adopted, the amendments to the Articles and Rules will have effect from and including 14 May 2012 (the day after the last day of season 2011/2012).

No further comment will be made in respect of these proposals until after the General Meeting on 30 April at which they will be considered by the clubs.