Premier League clubs have approved changes to the Associated Party Transactions (APT) rules at a meeting in central London.
Of the 20 teams that make up the Premier League, only four of them have voted against these proposed changes at said meeting (Manchester City, Aston Villa, Nottingham Forest and Newcastle United). The English League needed at least 14 clubs to vote in favor for the amendments to be approved, and finally there were two more.
The Premier League, which cannot deal with APT agreements and is potentially open to damages from other clubs trying to secure agreements with associated parties in the interim period, was prepared to present its list of amendments as quickly as possible.
Of the clubs that have opposed, Manchester City is the one that has had the most conflicts, since last summer it had legal conversations with the Premier League about how this problem should be resolved, reaching the conclusion by the ‘skyblues’ of that “no vote should be held until the court has provided its full guidance on the APT rules.”
Additionally, Aston Villa co-owner Nassef Sawiris said they will “vote against the proposed APT rules” asking for the vote to be delayed, backing Manchester City. Arsenal, Bournemouth, Brentford, Fulham, Liverpool, Manchester United, West Ham and Wolverhampton supported the Premier with evidence during the summer arbitration.
The Premier League asked clubs to vote on amendments to make the rules legal and comply with UK competition law. This includes adding shareholder loans to the Fair Market Value (FMV) assessment, removing some of the amendments made to the APT rules earlier this year and changes to the way clubs access the bank. of league data, which is used to make FMV decisions.
Simon Cliff, general counsel of Manchester City, sent a message to the English Federation and the rest of the clubs that make up the Premier League warning that voting in favor of these amendments “involves a material risk.”
Premier League statement
The amendments to the rules address the findings of an arbitration tribunal following a legal challenge by Manchester City to the APT system earlier this year.
The Premier League has carried out a detailed consultation with clubs, informed by multiple opinions from expert and independent lawyers, to draw up rule changes that address the necessary amendments to the system.
This relates to the integration of the assessment of shareholder loans, the removal of some of the amendments made to the APT rules earlier this year and changes to the process by which relevant information from the ‘bank of League data is shared with a club’s advisors.
The purpose of the APT rules is to ensure that clubs cannot benefit from commercial agreements 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.
