Premier League clubs have voted to approve changes to the rules governing commercial deals, despite opposition from Manchester City, Newcastle United, Nottingham Forest, and Aston Villa.
In a meeting in London on Friday, the clubs voted 16-4 in favour of amendments to the Associated Party Transaction (APT) regulations. These changes, aimed at preventing clubs from gaining unfair advantages through commercial deals, come after an independent panel found aspects of the previous rules to be unlawful. A minimum of 14 votes was required for the changes to pass.
The APT rules are designed to stop clubs from benefiting from commercial or sponsorship agreements involving companies linked to their owners if those deals exceed “fair market value.” The updated regulations now include the assessment of shareholder loans, which must meet fair market interest rates and adjustments to previous amendments made earlier this year.
“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 by virtue of relationships with associated parties,” the Premier League said in a statement.
Read Also: Premier League legal bills exceed £45m as financial probes mount
During the meeting, representatives from Chelsea and Manchester United urged other clubs to back the new rules. Manchester City and Aston Villa, who opposed the amendments, sought to delay the vote, reaching out to rival clubs beforehand in an attempt to gain support for a postponement.
Manchester City’s financial dominance has been under scrutiny since its 2008 takeover by Sheikh Mansour bin Zayed Al Nahyan. Earlier this year, City legally challenged the APT rules on competition law grounds. While an arbitration panel found some elements of the APT regulations unlawful, it also determined that the rules were necessary to maintain fairness and pursue a legitimate objective.
The recent rule changes now encompass shareholder loans, requiring them to adhere to fair market interest rates. Aston Villa, led by owner Nassef Sawiris, argued that a delay was needed to achieve a broader agreement on the rules. Nottingham Forest and Saudi-backed Newcastle United, who have faced challenges in rapidly advancing their competitive goals since a 2021 takeover by the Saudi Public Investment Fund, also voted against the changes.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
