English top-flight soccer clubs voted 16 in favour and four against associated party transaction changes.
- Premier League and City both claimed victory last month after arbitration panel found some elements of APT rules were unlawful
- Aston Villa, Newcastle United and Nottingham Forest side with City in vote
Premier League clubs have voted to amend sponsorship rules despite calls from champions Manchester City for a delay.
City challenged the league’s associated party transaction (APT) rules, which assess whether deals between clubs and entities linked to their ownership represent fair market value (FMV), on competition law grounds earlier this year.
An arbitration panel found aspects of them unlawful, which City insist makes the entire set of rules “void” until the panel provides further guidance.
The Premier League instead consulted with clubs over amendments. A long meeting had been predicted by league sources to discuss this topic, but before 9.30am on 22nd November the Premier League confirmed clubs had approved amendments to the rules, which the league believes now makes them lawful.
This includes adding shareholder loans to the FMV assessment, the removal of some of the amendments made to APT rules earlier this year and changes to how clubs access the league’s databank which is used to make FMV decisions.
City had support for a postponement from Aston Villa, whose owner Nassef Sawiris told The Telegraph earlier this week that a delay was needed to achieve unanimity on the rules. He also expressed concerns that pressing ahead with the amendments could lead to a further costly legal fight for the Premier League.
Nottingham Forest were also understood to be planning to support City, but the picture looked positive for the Premier League on 21st November that it could get a 14-club majority.
A statement from the Premier League 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.
‘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.’
There were no abstentions in the vote which saw a 16-4 majority in favour, with City, Villa, Forest and Newcastle United against the amendments.
City were represented by their chief financial officer Ingo Bank at the meeting but it’s understood he didn’t speak. Manchester United chief executive Omar Berrada and Chelsea’s general counsel James Bonington spoke in support of the amendments.
Credit: https://www.sportspromedia.com/news/premier-league-sponsorship-apt-rules-vote-manchester-city-november-2024/