Premier League clubs have greenlit modifications to the Associated Party Transaction (APT) regulations, despite strong opposition spearheaded by Manchester City. Aston Villa had also signaled their intent to vote against the proposed changes, but the amendments were swiftly endorsed by a majority vote of 16 to 4 during a shareholders' meeting held in central London.
The clubs were urged to approve minor adjustments to the rules governing transactions that generate revenue from sources linked to their ownership. These proposed changes come in the wake of criticisms raised by an arbitration tribunal last month. The tribunal determined that rules permitting owners to extend interest-free loans to clubs should have been classified as APT deals. Additionally, clubs were found to have been denied timely access to a database of previous deals when negotiating APT arrangements. The tribunal also highlighted concerns regarding the timeliness of the league's adjudications on such transactions.
Manchester City has contended that the tribunal's criticisms have compromised the league's entire APT framework. However, the league maintains that the tribunal's findings actually validate its broader rules, and with the implemented changes, the system remains robust. In a statement released on Friday, the Premier League noted: “During today's Premier League Shareholders' meeting, clubs approved amendments to the League's Associated Party Transaction (APT) rules. The Premier League has engaged in extensive consultations with clubs, informed by various expert opinions from independent Leading Counsel, to draft rule changes that address necessary adjustments to the system.
This includes integrating the assessment of Shareholder loans, removing certain amendments made to APT rules earlier this year, and altering the process for sharing relevant information from the League's ‘databank’ with a club's advisors. The purpose of the APT rules is to ensure that clubs cannot gain unfair advantages from commercial deals or cost reductions that are not at Fair Market Value (FMV) due to relationships with Associated Parties. These rules were established to provide a robust mechanism to protect the financial stability, integrity, and competitive balance of the League.”
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