According to British media reports, the Premier League has sent 20 of its clubs
warning letter
, reminding them that they will be held accountable for their involvement in the
Fraudulent player transfers
And face penalties. The email was sent days after unusual activity during the recent transfer window, warning clubs to be on high alert for possible breaches.
Sources say some clubs have tried to raise money through so-called swaps to meet financial control regulations, but the deals are seen as a possible attempt to increase book value before the end of the financial year to comply with profitability and sustainability rules.
The Premier League's legal team has already begun to review these deals, in particular whether they involve non-fair deals in excess of £1 million. They have the power to require clubs to provide details of negotiations and relevant documents to assess whether the deal complies with fair market value rules.
The Fair Market Value rule takes into account several factors, such as player age, position, performance data and injury record, to ensure fairness and transparency in player transfers.
The Premier League also warned that they have the right to demand a full or partial refund from the purchasing club if any transfer fee is found to have been inflated. Clubs are being asked to adhere to the principle of utmost good faith in all dealings and to provide true and accurate financial information.
The current transfer activity of clubs such as Aston Villa is likely to be the focus of regulatory attention, especially after signing a number of young players, and their finances and trading practices could come under further scrutiny.
