Premier League clubs voted to approve changes to the league’s Associated Party Transactions (APT) at a meeting held in central London on Friday, where representatives from all 20 teams were present.
The proposed changes came into effect after an independent tribunal found some aspects of the APT rules to be unlawful following a lawsuit by Manchester City.
“At the Premier League Shareholders Meeting today, clubs approved changes to the League’s Associated Party Transaction (APT) rules.
The amendments to the rules address the findings of the arbitration tribunal following a legal challenge to the APT system by Manchester City earlier this year.
The statement released by the Premier League said, “The Premier League has undertaken detailed consultation with clubs – informed by a number of opinions from expert, independent leading consultancies – to draft rule changes that address the necessary amendments to the system.”
As reported by The Athletic. According to the report, the PL was desperate to bring in the new amendments as soon as possible as it could have disadvantaged other clubs trying to secure Associated Party Deals during this time.
“This relates to unifying the valuation of shareholder loans, removing certain amendments made to the APT rules earlier this year and changes to the process by which relevant information from the League’s ‘databank’ is shared with club advisers.” “The purpose of the APT rules is to ensure that clubs are not able to benefit from commercial deals or cost reductions based on relationships with associated parties that are not at fair market value (FMV).
These rules were introduced to provide a robust mechanism to protect the League’s financial stability, integrity and competitive balance,” the statement said.