Premier League Clubs Approve New Sponsorship Rules Despite Man City’s Opposition
The Premier League has announced that all 20 clubs have voted on changes to the Associated Party Transaction (APT) rules, following a legal challenge initiated by Manchester City. Despite City’s objections, the amendments were approved during a Shareholders’ meeting on Friday.
Legal Challenge Spurs Rule Changes
The vote comes after an independent arbitration panel found sections of the previous APT rules unlawful due to a legal challenge brought forward by Manchester City earlier this year. APT rules are designed to ensure that commercial deals or transactions involving clubs and related entities are conducted at Fair Market Value (FMV), preventing artificial inflation of club revenues.
Premier League Statement on APT Revisions
In a statement shared via David Ornstein on X, the Premier League confirmed the approval of the updated rules:
“At a Premier League Shareholders’ meeting today, clubs approved changes to the League’s Associated Party Transaction (APT) rules.”
The statement further outlined:
“The amendments address the findings of an Arbitration Tribunal following a legal challenge by Manchester City to the APT system earlier this year. The Premier League consultation with clubs has conducted a detailed process informed by multiple opinions from expert, independent Leading Counsel – to draft rule changes that address amendments required to the system.”
Key changes include:
- Integrating the assessment of Shareholder loans.
- Removing some prior amendments made to APT rules earlier this year.
- Adjusting the process for sharing relevant information from the League’s “databank” with club advisors.
“The purpose of the APT rules is to ensure clubs are not able to benefit from commercial deals or reductions in costs that are not at Fair Market Value by virtue of relationships with Associated Parties,” the statement explained, emphasizing the importance of safeguarding financial stability, integrity, and competitive balance in the league.
Manchester City Stands Opposed
Manchester City, along with Aston Villa, Newcastle United, and Nottingham Forest, voted against the amendments, raising concerns over the consultation process. City accused the Premier League of rushing its review and warned of potential further legal action if the changes are enforced.
Former CBS Sports journalist Ben Jacobs highlighted the opposition, stating these clubs resisted the revised rules due to concerns over their implications.
What Are APT Rules?
The APT framework ensures that transactions or sponsorships between a club and associated entities linked to its ownership are fairly valued. This prevents clubs from leveraging such relationships to gain an unfair financial advantage, preserving the competitive balance of the league.
While the updated rules have been approved, Manchester City’s dissent and legal pushback suggest that this issue may not yet be fully resolved.
