The Premier League has communicated with its clubs, outlining potential amendments to its rules in light of last month’s pivotal ruling in a legal dispute with Manchester City regarding regulations on commercial agreements.
The arbitration panel’s decision came after City contested the league’s associated party transaction (APT) rules, which are designed to ensure that sponsorships involving entities linked to club owners reflect fair market value, preventing artificially inflated deals.
In the ruling, some of City’s objections were upheld. Specifically, the tribunal found that the exclusion of low-interest shareholder loans from APT rules was unlawful and that recent rule changes introduced in February to tighten these regulations also breached competition law.
Following the verdict, City argued that the rules were now “void” and expressed “concern” over the Premier League’s indication that new APT rules could be quickly implemented, hinting at potential further legal action if rapid changes were pursued.
Following discussions by its Legal Advisory Group and Financial Controls Advisory Group, the Premier League has proposed a series of rule amendments to its 20 clubs, with a meeting scheduled for 22 November.
In a letter viewed by BBC Sport, clubs were informed that these proposed changes stem from legal advice provided by a barrister. One key amendment involves redefining “fair market value.”
Currently, APT rules describe this as “the amount for which an asset, right, or other subject matter of the transaction would be sold, licensed or exchanged, a liability settled, or a service provided, between knowledgeable, willing parties engaging in an arm’s length transaction in normal market conditions.”
The proposed revision changes “would” to “could” and removes “in normal market conditions,” potentially offering clubs greater flexibility in arranging commercial deals with associated parties.
Additionally, it is proposed to reverse the exclusion of shareholder loans from APT regulations. Whether these amendments will secure the necessary two-thirds majority for approval remains uncertain.
Both Manchester City and the Premier League declined to comment.