Borrowing limitations for sports clubs and corporations have been announced

Sports clubs and sports JOINT STOCK companies will be able to borrow up to 10% of their gross revenues in a budget year Sports clubs and sports JOINT STOCK companies will be able to borrow up to 10% of their gross revenues in a budget year. The regulation determining the principles regarding the exemptions of sports clubs and JOINT STOCK companies from borrowing limitations was published in today’s Official Gazette. Accordingly, the amount assumed as a liability through borrowing is defined as the difference between the total of foreign resources included in the financial statements as of the end of the current accounting period and the total of foreign resources included in the financial statements as of the end of the previous accounting period. The ceiling for borrowing has been determined as 50 percent According to the regulation, borrowings above the envisaged 10 percent rate can be made with the additional budget accepted by the affirmative vote of at least two-thirds of the total number of general assembly members in sports clubs, of the shareholders or their representatives constituting the majority of the capital in public sports JOINT STOCK companies, and of the shareholders or their representatives constituting at least two-thirds of the capital in other sports JOINT STOCK companies. However, the borrowing to be made with the additional budget cannot exceed 50 percent of the gross revenues of the previous year.