Premier League clubs have given the green light to amendments regarding Associated Party Transactions (APT) during a meeting in central London. Out of the 20 teams in the league, only four voted against the proposed changes, namely Manchester City, Aston Villa, Nottingham Forest, and Newcastle United. The amendments required at least 14 clubs to vote in favor in order to be approved, and in the end, there were two more.
The Premier League, which is unable to handle APT deals and could potentially face damages from other clubs attempting to secure deals with associated parties in the meantime, was eager to present its list of amendments as quickly as possible.
Among the opposing clubs, Manchester City has experienced the most conflicts. Last summer, they engaged in legal discussions with the Premier League on how to resolve this issue, ultimately concluding that “no vote should take place until the court has provided its full guidance on the APT rules.”
Aston Villa co-owner Nassef Sawiris also voiced opposition to the proposed APT rules and called for a delay in the vote, aligning with Manchester City. On the other hand, Arsenal, Bournemouth, Brentford, Fulham, Liverpool, Manchester United, West Ham, and Wolverhampton supported the Premier League by providing evidence during the summer arbitration.
The Premier League requested clubs to vote on the amendments to ensure that the rules are legally compliant with UK competition law. This includes incorporating shareholder loans into the Fair Market Value (FMV) assessment, removing certain amendments made to the APT rules earlier this year, and making changes to how clubs access the league’s database used for FMV decisions.
Simon Cliff, Manchester City’s general counsel, cautioned the English FA and other Premier League clubs that voting in favor of these amendments “involves a material risk.”
In a statement, the Premier League explained that the rule amendments address the findings of an arbitration tribunal following Manchester City’s legal challenge to the APT system earlier this year. The league conducted extensive consultations with clubs and sought opinions from expert and independent lawyers to draft the necessary changes to the system.
The purpose of the APT rules is to ensure that clubs do not benefit from commercial deals or cost reductions that are not at fair market value due to relationships with associated parties. These rules were implemented to safeguard the financial stability, integrity, and competitive balance of the league.
