Yes, but only on strict conditions. A club or relegated club may charge, assign or otherwise grant security over future central funds only with the league's prior written consent, and without the board's express prior consent it may do so only in favour of a financial institution.
What a club must do before granting security
The rule covers all or part of a club's entitlement to future distributions of central funds. If the proposed arrangement would give a lender rights over that future entitlement, the club must disclose to the league the documentation that would put the arrangement into effect.
The club cannot enter into that documentation first and seek approval later. The league's written consent has to come in advance, and that consent is not to be unreasonably withheld.
There is also a separate agreement requirement. The club must procure that both it and the lender enter into an agreement with the league, because the lender has to give a defined set of confirmations before the arrangement can proceed.
What the lender has to confirm to the league
These are the confirmations the lender must give.
| The lender confirms | What that covers |
|---|---|
| The entitlement stays subject to the rules | Future distributions of central funds remain subject to the league's articles and rules, and in particular to rules E.21, E.25 and E.31 |
| It waives its claims against the league | Any and all claims of whatever nature connected in any way with the league applying or enforcing those rules |
| The club's liabilities have been disclosed | The club has disclosed its current and future liabilities to other clubs, and the league confirms the disclosure accords with its records |
| No further security without consent | It will not further charge, assign, grant security over or otherwise vary its rights in those distributions without the league's prior written consent |
Who may take this security
The permitted lender group is limited. Without the board's express, prior consent, a club or relegated club may grant this security only to a financial institution.
That still does not create an automatic right to approval. The board may refuse to permit a proposed charge, assignment or grant of security to a financial institution if that institution's ownership or structure conflicts with the rules.
The one carve-out
There is one express exception.
| Situation | Do the requirements apply? |
|---|---|
| Security over future central funds given as part of a fixed and floating charge over the entirety of the club's assets and undertaking on usual commercial terms | No |
When that carve-out applies, the consent and lender-confirmation route described above does not apply. The exception is precisely drawn: the security has to form part of a fixed and floating charge over the entirety of the club's assets and undertaking, and it has to be on usual commercial terms.
FAQ
Can a club borrow against its TV-related central income?
It can use future central funds in a financing arrangement, but not freely. If the club proposes to charge, assign or otherwise grant security over that future entitlement, the league's prior written consent is required first.
Does the league have to approve the loan documents?
Unless the carve-out applies, yes. The club cannot enter into the relevant documentation without prior written consent from the league, and that consent is required in advance and is not to be unreasonably withheld. Where the security forms part of a fixed and floating charge over the entirety of the club's assets and undertaking on usual commercial terms, that requirement does not apply.
What does the lender have to agree with the league?
The lender has to join an agreement with the club and the league. In that agreement it accepts that the entitlement remains subject to the rules, waives claims linked to the league applying or enforcing those rules, accepts the liability-disclosure position, and promises not to alter its rights further without consent.
Who can lend against Premier League central funds?
As a starting point, only a financial institution can take that security. If the club wants to grant it to someone else, the board's express prior consent is needed, and even a financial institution may still be refused if its ownership or structure conflicts with the rules.