|
The Premier League has announced changes to its Associated Party Transaction (APT) rules after a vote from clubs. The move comes following a legal challenge from Manchester City. Associated Party Transactions relate to sponsorship deals between a club and other companies which may be linked, such as City and the United Arab Emirates' Etihad Aviation Group. City launched legal action against the Premier League earlier this year, alleging the rules were "unlawful" and "discriminated against Gulf ownership." An Arbitration Panel released its judgment last month, with City and the league both claiming victory. The panel ruled that the Premier League's APT system is a vital part of the structure of the competition. However, it also said that some aspects of the regulations were unlawful and had to be rebuilt. On Friday, the Premier League announced it had made those changes after at least a two-thirds majority of clubs granted their approval. It said in a statement: "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." The case was unrelated to hearing into the 115 charges for allegedly breaching the Premier League's financial rules. Any shareholder loans entered after the rule comes into effect will now have to be submitted as an APT, which will be subject to an FMV assessment. If the Premier League Board finds the loan to not be at FMV, the club must either terminate or vary the loan to reflect FMV and pay any shortfall in interest. Information from Reuters contributed to this report.
|
