The Premier League has informed Aston Villa that it intends to proceed with a vote to modify financial regulations on Friday, despite the club's request for a postponement. The league has been in consultation with clubs for over a month regarding changes to its associated party transactions (APT) rules, following an arbitration panel's ruling that certain aspects were unlawful. Clubs are scheduled to vote on these changes at a meeting in central London on Friday, despite Manchester City's warning that amendments should not be rushed.
Aston Villa is now understood to have joined the calls for a postponement, criticizing the public handling of the APT issue. The league has responded to Villa, agreeing on the importance of maintaining the privacy of the process but reiterating its plan to hold the vote on Friday. The league's chief executive, Richard Masters, continues to engage with clubs this week.
Villa's letter urges an end to the 'acrimonious back and forth exchanges' over APT, arguing that they undermine the league's leadership, club executives, and the Premier League as an organization. For the rule changes to pass, a majority of 14 clubs must agree, or two-thirds of votes cast if there are abstentions.
The most significant proposed change is to subject the interest rate on shareholder loans to the fair market value (FMV) test. The amendment will not require backdating of fair market value interest charges to the initial loan issuance. However, it is understood that the amendment would apply an effective interest rate to any existing loan after a grace period, not just to new loans.
During the grace period, club owners and shareholders who have provided loans will have the option to convert them to equity, though this makes withdrawing their funds less straightforward. Some amendments approved in February are set to be reversed. One involves replacing 'would' with 'could' in the definition of fair market value within the rules, which is expected to offer clubs more flexibility.
Clubs will also be granted access to databank information held by the league for comparison purposes before calculations are made on whether a deal has been conducted at fair market value.
Source link: https://www.theguardian.com
