Man City defeated in Premier League vote on commercial rules – Liverpool FC

Premier League clubs voted to change sponsorship rules on Friday morning despite calls from the champions Manchester City for a delay.

Earlier this year, City challenged the league’s related party transaction (APT) rules, which assess whether transactions between clubs and entities related to their ownership represent fair market value, on competition law grounds.

An arbitration panel found that certain aspects of them were illegal, and the city is insisting that the entire set of rules be “vacated” until the panel provides further guidance.

The Premier League instead he consulted with the clubs about the amendments. League sources predicted a lengthy meeting to discuss the matter, but before 9.30am Premier League have confirmed that the clubs have approved changes to the rules, which the league believes now makes them legal.

This includes adding shareholder loans to the fair market value (FMV) valuation, removing some of the changes made to the APT rules earlier this year and changes to the way clubs access the league’s database, which is used to make FMV decisions.

Premier League statement

At a Premier League At today’s shareholders’ meeting, the clubs approved changes to the League’s related party transaction (APT) rules.

The changes to the rules address the findings of an Arbitral Tribunal following a legal challenge by Manchester City to the APT system earlier this year.

The Premier League carried out a detailed consultation with the clubs – informed by several expert opinions, an independent senior adviser – to draft rule changes that address the necessary changes to the system.

This relates to the integration of shareholder loan assessment, the removal of some of the changes made to APT rules earlier this year and changes to the process by which relevant information from the League’s ‘data bank’ is shared with a club’s advisers.

The purpose of the APT rules is to ensure that clubs cannot benefit from trade offers or cost reductions that are not at fair market value (FMV) by virtue of their related party relationships. These rules were introduced to provide a robust mechanism to protect the financial stability, integrity and competitive balance of the League.