Friday, November 22, 2024

Conditions for clubs to receive money through CVC

Info RMC Sport – In close collaboration with DNCG, LFP has an obligation to provide positive equity to clubs to pay the amounts linked to the agreement with CVC. Groups of clubs should also be formed soon to find out what they can invest in and in what areas.

The LFP’s general meeting this Friday confirmed the disbursement of funds from the CVC. We also know a lot about what happens to expelled clubs and promoted clubs. PSG and European clubs (OM, Lyon, Nice, Rennes, Monaco, Lille) will receive another 13 33 million euros (twice paid 16.5 million). But those going down to League 2 will do half and half with the promoted ones.

Other L2 clubs will receive 3 million (twice paid 1.5 million). The same half and half mechanism will be set up between those promoted in National and League 2. Now that the distribution rules are engraved in stone, the league wants to regulate the eligibility and marking of these new funds. As for the LFP, this money is used to cover the losses of the clubs, so the CVC converts the shareholders.

According to our information, LFP, in close collaboration with DNCG, will condition the payment of sums paid for the obligation to provide positive equity to clubs. If a club refuses, it will receive only 50% of the amount awarded. The other 50% will then be split between the clubs playing the game and the game according to the rules.

Club groups will be formed

In addition, the League and DNCG, in consultation with the CVC, will be very careful in utilizing the funds of each club. The idea is that the money should be used to strengthen the overall value of the clubs and therefore their infrastructure. But not all clubs are the same. Those who are significantly backward (such as Clermont for example) should allocate this new money to their infrastructure. Others who are more advanced in terms of infrastructure (such as Lyon, for example) can spend a portion of this money to reasonably strengthen their employees (pay and transfer).

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A refined study will be carried out in the coming weeks to form groups according to the circumstances of the clubs and determine what they can invest in and in what areas. In definite terms, a club that is required to invest in its infrastructure should not exceed a certain wage limit. The league is also considering going further by imposing a salary cap rate on its payroll. He is waiting for UEFA to approve its new financially fair rules of the game.

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