APPENDIX 2 - Euroleague Basketball

According to what is described in the previous paragraph, it must also
be proved that there are no outstanding payments with reference to
player transfers made during the season that is being analysed.
In the case that any of the situations described in the two previous
paragraphs does not take place, an ALTERNATIVE WRITE-OFF PLAN must be
presented in order to face this situation. This alternative write-off plan will
use financial instruments such as the possible deduction of the amount
corresponding to the economic distribution of the season and the execution
of the bank guarantee submitted by the clubs.
5. CANCELLATION OR SUSPENSION OF A LICENCE CONTRACTS AND
PARTICIPATION REQUIREMENTS FOR B OR C LICENCE
CONTRACTS
From a financial point of view, an A Licence may be cancelled or suspended
or a club may not have the right to participate in the Euroleague (B or C
Licence) if one or more of the following circumstances occur:
a) If the club repeatedly fails to submit the reports within the period
established.
b) If the club has any outstanding debts (non-fulfilment of the payment
deadline) derived from transfer activities with other clubs participating
in the competitions organised by EP.
c) If the club has any outstanding debts with players.
d) If the club has been formally declared bankrupt or insolvent by a
competent body in its home country or has entered into liquidation or
dissolution.
e) If the final Annual Accounts presented by the club have not been
audited.
The circumstances stated in b) and c) will not be cause of cancellation,
suspension or non-participation if an alternative write-off plan or a debt
recovery plan is agreed and signed between the parties involved. Said
circumstances will only be cause of cancellation, suspension or nonparticipation
should the club’s national legislation not ensure the efficiency
of the recovery.
235