Guidance
‘Normal market conditions’ are typically those in which revenues bear a reasonable relationship to any
costs incurred, taking into account the economic value of the product supplied or service provided.
Normal market conditions shall typically be assessed through benchmarking, i.e. in light of the terms
under which comparable Transactions carried out by comparable Clubs have taken place in comparable
circumstances.
Adopting a tender process that attracts bids from non-Associated Party bidders is good evidence that
the resulting Transaction has been concluded in normal market conditions, subject to any applicable Fair
Market Value Assessment. However, that will be the case only where the necessary conditions are
satisfied, being non-discriminatory treatment of all bidders at all stages of the procedure and objective
selection and award criteria being specified in advance of the process. For completeness, a lack of
competing bids from non-Associated Parties is not, in and of itself, determinative that the Transaction in
question has not been concluded in normal market conditions.
In any event, an assessment of normal market conditions shall consider all the relevant circumstances of
the particular case. There can be exceptional circumstances in which a Transaction, even if carried out at
market prices, may not be considered in line with market conditions. For instance, and by way of example
only, where a Transaction does not meet an actual need of the Associated Party, they may not be acting
in a manner similar to that of a non-Associated Party under normal market conditions. Accordingly,
Transactions carried out under such conditions may confer an advantage on a Club which it would not
have obtained under normal market conditions.
A.1.98. “Fair Market Value Assessment” means an assessment as to whether the
consideration either paid or received or to be paid or received by the Club, Player,
Manager or Senior Official (as applicable) pursuant to a Transaction represents Fair
Market Value. In conducting a Fair Market Value Assessment, the Board is required to:
(a) consider:
(i) an assessment of the value of the Transaction produced by an independent
expert procured by the Board (save that the Board may elect not to obtain
an assessment by an independent expert where the Transaction in question
involves no consideration paid or to be paid to the Club, Player, Manager or
Senior Official or involves the sale or loan of a Player’s registration);
(ii) any relevant information provided by the Club (including any assessment
of the value of the Transaction produced or procured by the Club); and
(iii) such comparable evidence of the values of similar Transactions as is
appropriate, relevant and readily available to it at the time of the
assessment; and
(b) comply with any protocols agreed by Clubs for that purpose (including the Fair
Market Value Assessment Protocol – Commercial Rights Agreements at
Appendix 18 of the Rules). For the avoidance of doubt, where there is no such
protocol in place applicable to a particular type of Transaction, the Board will
conduct the Fair Market Value Assessment as it sees fit, in compliance with
paragraph (a), above;
