BringBackSwales
Well-Known Member
- Joined
- 3 Jul 2009
- Messages
- 33,650
Related party sponsorships are perfectly legal under FFP. They're just subject to a fair value test
m expecting United to
m expecting United to
In response united about to be sponsored by travel lodgeThat's my understanding about the hotel and the sponsorship. I originally thought Mandarin Group owned it but it's clear that they operate the hotel on behalf of the owners.
What we don't really know is the exact commercial/legal relationship between EPCO, the Abu Dhabi company that appears to own the hotel. Are they just the owners of the building, receiving rental or lease income? Or are they part of a joint venture, sharing management and profits?
At the end of the day, assuming it's >£1m the PL will need to decide if it's (a) an associated party and (b) if so (which isn't a given by any means) whether it's fair value.
Even if they decide that it's associated but fair value, I doubt the usual cretins down the M62, Stretford or North London, will accept it.