The Premier League has released a statement on Associated Party Transaction rules after shareholders voted for a change in the rules.
Following a legal battle between Manchester City and the Premier League regarding APT deals, clubs have now voted in favour of amending the current regulations.
‘Associated parties’ are companies or people who have a significant interest in the relevant club, financially or otherwise. Associated party transaction (APT) regulations made sure that any deal between Premier League clubs and related companies is made at “fair market value”.
According to the BBC, clubs voted 16 in favour and four against with less than 30 minutes required to come to a decision. Manchester City and Aston Villa were among those who voted against.
Manchester City had earlier written to the 19 other Premier League clubs expressing their “fundamental concern” over the “unlawful” amendments that the Premier League have proposed to the rules.
“At a Premier League shareholders’ meeting today, clubs approved changes to the League’s Associated Party Transaction (APT) rules,” the statement 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 APL 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.”
