Premier League clubs have voted in favour of changes to the top-flight’s Associated Party Transactions (APT) rules, with Manchester City maintaining its long-held opposition.
APT rules govern Premier League clubs’ commercial relationships, essentially preventing clubs from engaging in commercial partnerships with ‘associated parties’ – i.e. companies which already have close links to the club, such as sharing an owner.
At a shareholder meeting today (22 November) 16 clubs voted in favour of the rule changes and four against. It is understood that Manchester City and Aston Villa have voted against it, whilst the Telegraph reports that Newcastle United and Nottingham Forest are the other two clubs opposed.
The changes to the rules relate to the removal of some amendments made earlier in the year and changes to the process by which relevant information from the Premier League databank is shared with club advisors.
The third important change relates to the assessment of shareholder loans. From now on, any loans made to a club by a shareholder need to be submitted as an APT and will be assessed for any impact on fair market value (FMV).
APT rule row far from over
APT rules were first introduced in 2021 when Newcastle United was purchased by the Saudi sovereign wealth fund, the Public Investment Fund (PIF). FMV, as outlined above, is the core notion behind APT, with the league trying to ensure that commercial deals do not give clubs a disproportionate financial advantage over others.
Manchester City has been dissatisfied with the rules for some time, with today’s vote a result of the club initiating a legal challenge against the Premier League in which it called the APT rules discriminatory.
This led to a two-week arbitration process in October, which the league stated this week’s shareholder vote was based on alongside a ‘detailed consultation’ with clubs informed by expert opinion.
The alleged inclusion of Newcastle United in the four clubs opposed to the rules should not be too surprising given the aforementioned introduction of the rules after the Northeastern team was taken over by the PIF three years ago.
Aston Villa, meanwhile, stated earlier this week that it would join Manchester City in the vote, with owner Nassef Sawiris arguing that the league needs a ‘fresh start’.
It is unclear why Nottingham Forest has reportedly voted against the rule changes, though the club has found itself at odds with the Premier League over Profit and Sustainability Rules (PSR). The club may be concerned about the stability of revenue streams after its points deduction for breaching PSR rules last season.
What is clear is that the argument over APT rules, and other Premier League regulations, will likely continue long after today’s vote. The timing of these legal rows during the government’s push for greater regulation of football is also noteworthy, with the proposed football regulator set to have a watchdog role over club finances.
