Manchester City’s efforts to halt the implementation of new rules on Associated Party Transaction have been unsuccessful. The club had previously triumphed over the Premier League in an arbitration hearing, where an independent panel concurred with their argument that the rules introduced post-Newcastle United’s takeover were unlawful.
Despite the league’s attempts to downplay the more damaging aspects of the verdict and swiftly move forward, they were compelled to seek advice on how improved regulations could be established. However, City remained dissatisfied ahead of a Friday morning vote involving all clubs, cautioning that new rules should not be implemented until the expert opinions from the arbitration hearing had been thoroughly examined.
Aston Villa was among the clubs sharing this viewpoint, but a majority supported the Premier League’s proposal during the meeting.
“At a Premier League Shareholders’ meeting today, clubs approved changes to the League’s Associated Party Transaction (APT) rules,” read a statement. “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.”
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