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Premier League Clubs Approve Changes To APT Rules

by Leadership News
10 months ago
in Sport, How-to, World News
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Premier League clubs have voted to approve changes to rules governing commercial deals.
At a meeting in London on Friday, clubs took under 30 minutes to approve the changes to Associated Party Transaction regulations (APTs).

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The clubs voted 16 in favour and four against. Those voting against included Manchester City and Aston Villa, who had both written to clubs before the meeting seeking support.

For changes to be approved, a minimum of 14 Premier League clubs needed to vote in favour.
Friday’s vote came after an independent panel found aspects of the Premier League’s rules to be unlawful earlier this year, following a lawsuit instigated by Manchester City.

The Premier League in a statement said “Integrating the assessment of shareholder loans” and “include the removal of some of the amendments made to APT rules earlier this year”.

“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.”

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In October, both the Premier League and Manchester City claimed victory after the decision of an arbitration panel over APTs, which seek to ensure sponsorships with companies linked to clubs’ owners represent fair market value and are not artificially inflated.

Manchester City had some of their complaints upheld, with two aspects of the rules deemed unlawful by the tribunal. It said low-interest shareholder loans should not be excluded from the scope of the rules, and that changes made in February to toughen up the regulations also breached competition law.

After the tribunal, City claimed the rules were “void” and criticised the Premier League’s “misleading” suggestion they could be swiftly amended.

The club threatened further legal action if there was a “knee-jerk reaction”.

But following meetings of its Legal Advisory Group and Financial Controls Advisory Group, the Premier League proposed several amendments before today’s vote in London.

 

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