1. According to the UEFA CL & FFP Regulations the reporting perimeter must include all entities in whose books the compensation paid to employees arising from contractual or legal obligations is accounted for. Therefore, it also includes a third party entity that has concluded with a club an agreement according to which said third party is contractually obliged to pay performance bonuses that form part of the club’s overall employee compensation.

2. An entity may be excluded from the reporting perimeter only if it is immaterial compared with the overall group made by the licence applicant. The term “immaterial” refers in principle to entities that fall within the reporting perimeter but exert almost no recognizable influence on the operations and activities mentioned in Article 46bis (2) and (3) of the UEFA CL & FFP Regulations. It must necessarily be interpreted narrowly as it constitutes an exception to the general rule.

3. Considering the relationship between the basic rule in Article 46bis (2) and (3) and the exception in Article 46bis (4), it is the club that bears the burden of proof to establish the facts which classify an entity as “immaterial” and therefore needs to convincingly establish that the presence and activities of the entity are indeed secondary.