The proposed security package comprises:
EFC opening two bank accounts in EFC’s name, but charged in favour of the LCC SPV.
The first account (Cash Flow Account) will be used as security for the payment of the rent in the Occupational Lease by EFC. All season ticket revenue, hospitality fees and naming rights income will be credited to this account. EFC are only entitled to access and use the funds once the rent for the forthcoming year has been paid. It is proposed if EFC is relegated from the Premier League and for as long as EFC are not in the Premier League, they will be required to credit a significant sum of the season ticket revenue (excluding hospitality membership fees and naming rights income) to this account.
The second account (Rent Deposit Account) will be used as security for performance of EFC’s obligations under the Occupational Lease. EFC will be required to make annual payments to the Rent Deposit Account for the first five years of the term of the lease. All interest which accrues on the deposit remain in the account. If EFC is relegated, then they will be required to top up the Rent Deposit Account using parachute payments paid by the Premier League.
Hmm not sure how I feel about that. They saying that we pay the rent before wages which I know will need to be done anyway, I Just hope we can afford it all!!