Manchester City lost their battle to block the proposed changes to the Premier League’s Associated Party Transaction (APT) rules, following their arbitration hearing.
The Blues had initially won a significant victory over the Premier League in an arbitration hearing, where an independent panel ruled that the APT rules introduced after Newcastle United’s takeover were unlawful. While the Premier League tried to downplay the impact of the verdict, their attempt to move past it was halted as they were forced to reconsider the regulations and seek further expert advice.
Despite this, Manchester City remained unsatisfied ahead of a crucial vote on the changes, warning all clubs that the new rules should not be implemented before the expert opinions from the arbitration hearing were fully considered. Aston Villa shared this view, but during the meeting, a majority of clubs voted in favor of the Premier League’s proposal.
The Premier League released a statement following the vote, saying, “At a Premier League Shareholders’ meeting today, clubs approved changes to the League’s Associated Party Transaction (APT) rules.” The statement explained that the amendments were in response to the arbitration tribunal’s findings after Manchester City’s legal challenge.
The Premier League’s statement continued, “The Premier League has conducted a detailed consultation with clubs – informed by multiple opinions from expert, independent Leading Counsel – to draft rule changes that address amendments required to the system. This relates to integrating the assessment of shareholder loans, the removal of some of the amendments made to APT rules earlier this year, and changes to the process by which relevant information from the League’s ‘databank’ is shared with a club’s advisors.”
The purpose of the APT rules, the statement clarified, is to ensure that clubs do not gain an unfair advantage from commercial deals or cost reductions that are not at Fair Market Value (FMV) due to relationships with associated parties. These regulations were introduced to protect the financial stability, integrity, and competitive balance of the league.
