Bill Foley has been given the green light to proceed with his planned minority investment in Hibernian FC.
Easter Road chiefs have been locked in talks with their governing body counterparts since mid-December to outline the US billionaire's plans for the club and Hampden chiefs are satisfied that the AFC Bournemouth owner would have no say or authority in the day-to-day running of Hibs.
Hibs also agreed to 'certain undertakings and commitments at the request' of the Scottish FA.
Foley, who also owns the Las Vegas Golden Knights ice hockey team, has a major stake in French side Lorient and recently received a licence for an Auckland-based team to compete in Australia's A-League. He is expected to acquire a shareholding of just under 25% in Hibs.
What happens next?
The club has struck an agreement in principle with Foley's Black Knight Football Club group for a minority investment. That proposal is due to be shared and ratified at the club's annual general meeting (agm), which will take place in February.
READ MORE - What Bill Foley's interest might mean for Hibs' future
Shareholders will be notified of the date in due course.
A statement from the club read: "Hibernian FC is delighted to confirm that the Scottish FA has approved the club’s ‘dual interest dispensation request’ that sits under Article 13.
"This decision came after a number of meetings between the two parties, alongside the club agreeing to certain undertakings and commitments at the request of the governing body.
"The club now has an agreement in principle with Black Knight Football Club for minority investment into Hibernian FC.
"The investment proposal will now be shared and ratified at the club’s Annual General Meeting, which will occur in February. The club’s shareholders will be informed of the date of the AGM in due course."
Initially, the Scottish FA employed a blanket ban on anyone owning at least 25% of another European football club from buying shares in clubs in Scotland, but those laws have been replaced by a less stringent, case-by-case approach.
Foley's cash boost is likely to be used to help strengthen Nick Montgomery's first-team squad as well as revamping part of the club's East Mains training complex, with an improved indoor facility top of the list. The stadium is also set to benefit from upgrades.
What has Foley said about his investment?
Speaking on the Men in Blazers podcast last year he said: "I believe if we can end up with four or five economic interests in various clubs we will have the system in place for players to advance and move onto the next club, and the next club. We'll have similar analytical staff in place and technical directors who will look for the right type of players who can ultimately play for Bournemouth.
"I believe there are opportunities to get one of the fourth, fifth, or sixth [ranked] Scottish clubs to third and playing in Europe. I believe we can pull that off with not a gigantic investment. We’d be a minority investor, a supporter of the club. I know we can help a Scottish team."
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