Manchester City suffered another defeat today – this time off the pitch – after Premier League clubs voted through amendments to the Associated Party Rules (APTs).
City felt the rule changes were unfair and took the league to arbitration, as well as lobbying their fellow top-flight clubs for support.
However, a majority of 16-4 backed the changes that essentially boil down to a club’s ability to generate income from avenues related to their ownership.
Clubs have to prove an APT conforms with fair market value with City arguing that prevents them from striking lucrative deals with partner companies.
The verdict from the arbitration, released in October, saw both City and the Premier League claim victory.
A Premier League statement read: “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 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 matter will do little to ease the simmering tension between the Premier League and City, the competition’s four-time defending champions.
While this has been going on, the independent hearing into allegations City breached 115 financial rules continues across London. The club deny any wrongdoing.
