Manchester City have been defeated in their attempt to stop new rules on Associated Party Transaction rules being voted through.
The Blues secured a significant victory over the Premier League in an arbitration hearing after an independent panel agreed with the club that the rules introduced since Newcastle United’s takeover were unlawful. While the league attempted to brush off the bruising parts of the verdict, their efforts to quickly move on were thwarted as they were forced to take advice on how better regulations could be put in place.
City were still not satisfied ahead of a vote on Friday morning with all clubs, warning all that new rules should not be put in place before the expert opinions from the arbitration hearing had been fully considered. Aston Villa were one of the clubs who also favoured that view, but in the meeting a majority backed the Premier League’s proposal.
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“At a Premier League Shareholders’ meeting today, clubs approved changes to the League’s Associated Party Transaction (APT) rules,” a 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 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.”
