2 weeks Ago By [email protected] (Jamie Gardner PA Chief Sports Reporter, Brian Dick)
Premier League clubs have voted in favour of changing sponsorship rules despite objections from current title holders Manchester City, setting the stage for potential clashes within English football's top tier. The reigning champs had previously called for deferral, challenging the league's associated party transaction (APT) rules - regulations that evaluate whether agreements between clubs and related ownership parties uphold fair market value - on the grounds of competition law. An arbitration tribunal deemed particular facets of these APT regulations as unlawful earlier this year, leading Manchester City to argue that this makes all the APT guidelines "void" until additional direction is provided by the panel.
Contrary to this, the Premier League moved forward with consultations among clubs about prospective modifications. Although a lengthy meeting was expected to unfold as predicted by league insiders to hash out the finer details, the Premier League announced before 09:30 am that club representatives had ratified modifications to the regulations. These amendments, believed by the league to render them compliant with legal standards, comprise the inclusion of shareholder loans in the fair market value (FMV) scrutiny, retracting some changes made to the APT rules earlier this year, and adjusting the methods through which clubs utilize the league's databank to inform FMV assessments.
Manchester City found an ally in Aston Villa concerning the postponement. Aston Villa’s owner Nassef Sawiris conveyed to the Daily Telegraph earlier this week his opinion that it was necessary to postpone the amendments to guarantee consensus. Sawiris also voiced apprehension that pressing on with the changes could ensnare the Premier League in another expensive legal wrangle.
However, it is claimed by the Press Association that Leicester City were one of the 16 clubs that voted in favour of the amendments. City, Villa, Forest and Newcastle opposing them. The Premier League released a statement outlining the situation: "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." In the decisive vote, there were no abstentions, resulting in a 16-4 majority supporting the amendments, with City's CFO, Ingo Bank, was present at the meeting but reportedly did not speak. Manchester United CEO Omar Berrada and Chelsea’s general counsel James Bonington voiced their support for the amendments.
City have been approached by PA for a response..
