Premier League clubs approve new APT rules
Premier League clubs have approved changes to Associated Party Transaction (APT) rules during a League Shareholders’ meeting.
Last month, Manchester City and the league both claimed a legal victory, after the champions challenged proposals for the new rules earlier this year.
16 clubs reportedly voted in favour of the new rules, passing the minimum requirement of 14, with Manchester City, Aston Villa, Newcastle United, and Nottingham Forest voting against the amendments.
Ahead of the meeting, City recently wrote a letter to the 19 other Premier League teams in order to express concern over the ‘unlawful’ rules, according to multiple UK media reports.
The Premier League says it took part in a detailed consultation with clubs to draft up changes to the rules, speaking with an independent Leading Counsel during the process.
The updated APT rules are intended to prevent clubs from benefitting from commercial partnerships or reductions in in costs that are not at fair market value (FMV), due to connections with Associated Parties.
From 22nd November onwards, all shareholder loans will need to be submitted as an APT, and will be subject to a FMV assessment.
A Premier League statement said, ‘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.
‘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.’
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