In a significant setback for Manchester City, Premier League clubs have given the green light to alterations in the League’s Associated Party Transaction (APT) rules.
The rule change required the support of 14 out of the 20 clubs to be ratified, and City had been optimistic of a favourable outcome, particularly after receiving public backing from Aston Villa ahead of the decision.
However, Villa’s endorsement and their plea for a 90-day delay on the vote did not sway the outcome. A statement from the Premier League read: “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.”