Soccer

Premier League clubs approve APT rule changes in blow to Manchester City

Associated party transaction changes approved by clubs, with vote decided 16-4 at London meeting

The Premier League’s 20 clubs held a meeting in central London this morning. Photograph: Getty Images
The Premier League’s 20 clubs held a meeting in central London this morning. Photograph: Getty Images
Fri Nov 22 2024 - 09:58

Premier League clubs approved changes to associated party transaction (APT) rules on Friday in the face of opposition led by Manchester City.

Aston Villa had also indicated they would vote against the changes but the alterations were swiftly approved by 16 votes to four at a meeting of shareholder clubs in central London. Clubs were asked to pass modest changes to rules relating to deals when they generate income from sources related to their ownership.

The proposed changes follow criticisms brought by an arbitration tribunal last month. The tribunal found that rules which allowed owners to extend interest-free loans to clubs should have been treated as APT deals, and clubs were found to have been denied timely access to a database of prior deals when trying to strike APT arrangements. Criticisms over the timeliness of the league’s adjudications on such deals were also made.

City have argued that the tribunal’s criticisms have undermined the league’s entire APT apparatus. The league says the tribunal was an endorsement of its broader rules and that, given the changes, they remain robust.

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The league said in a statement on Friday: “At a Premier League Shareholders’ meeting today, clubs approved changes to the League’s Associated Party Transaction (APT) rules. 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 is to ensure clubs are not able to benefit from commercial deals or reductions in costs that are not at Fair Market Value (FMV) by virtue of relationships with Associated Parties. These rules were introduced to provide a robust mechanism to safeguard the financial stability, integrity and competitive balance of the League.” — Guardian