Premier League clubs approve APT rule changes in blow to Manchester City – The Irish Times

Premier League clubs approved changes to associate party transactions (APT) rules on Friday despite opposition led by Manchester City.

Aston Villa also said they would vote against the changes, but the changes were quickly approved by 16 votes to four at a shareholders’ club meeting in central London. Clubs have been asked to make minor changes to the rules regarding transactions where they receive income from sources linked to their properties.

The proposed changes follow criticism leveled by the arbitration tribunal last month. The Tribunal found that the rules which allowed owners to provide interest-free loans to clubs should have been treated as APT transactions, and it found that clubs were denied timely access to a database of previous transactions when attempting to enter into APT agreements. There has also been criticism about the timing of the league’s decisions on such deals.

City argue that the tribunal’s criticism has undermined the league’s entire APT apparatus. The league says the tribunal upheld its broader rules and that, given the changes, they remain robust.

The league said in a statement on Friday: “At a Premier League shareholders meeting today, clubs approved changes to the league’s associated party trading (APT) rules. The Premier League has consulted extensively with clubs, drawing on multiple expert opinions and independent lead counsel, to develop rule changes to address the amendments required to the system.

“This is due to the integration of the assessment of shareholder loans, the reversal of some of the amendments made to the APT rules earlier this year and changes to the process by which relevant information from the League’s data bank is passed on to club advisers.

“The purpose of the APT rules is to ensure that clubs do not benefit from commercial transactions or cost savings that do not correspond to fair market value (FMV) due to related party relationships. These rules were introduced to provide a robust mechanism to protect the financial stability, integrity and competitive balance of the League.” — Guardian