Premier League clubs vote to change sponsorship rules despite calls for delay

Premier League clubs voted on Friday morning to change sponsorship rules despite calls from champions Manchester City for a delay.

Earlier this year, City challenged the league’s rules on associated party transactions (APT), which assess whether transactions between clubs and entities linked to their ownership represent fair market value, on competition law grounds. .

An arbitration committee has ruled certain aspects of it illegal, which City says makes the entire rules “void” until the committee provides further guidance.

The Premier League instead consulted clubs on the amendments. A lengthy meeting had been planned by league sources to discuss the matter, but before 9.30am the Premier League confirmed that clubs had approved amendments to the rules, which the league believes now makes them lawful.

This includes adding shareholder loans to the fair market value (FMV) assessment, removing some of the APT rule changes made earlier this year and changes to how clubs access to the league’s database which is used to make FMV decisions.

City had the backing of Aston Villa, whose owner Nassef Sawiris told the Daily Telegraph earlier this week that a delay was needed to reach unanimity on the rules. He also expressed concerns that continuing with the amendments could lead to another costly legal battle for the Premier League.

Nottingham Forest were also considering backing City, but the picture looked positive for the Premier League on Thursday as they could secure a majority of 14 clubs.

A league statement said: “The rule changes take into account the findings of an arbitration tribunal following a legal challenge to the APT system by Manchester City earlier this year.

“The Premier League has carried out detailed consultation with clubs – informed by multiple expert opinions and leading independent lawyers – to draft rule changes that address the necessary amendments to the system.

“This concerns the integration of shareholder loan valuation, the removal of some of the changes made to the APT rules earlier this year and changes to the process by which the relevant information from the “data bank” of the league are shared with a club’s advisors.

“The purpose of the APT rules is to ensure that clubs cannot benefit from commercial agreements or cost reductions that are not at fair market value (FMV) due to 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.

There were no abstentions in the vote which resulted in a 16-4 majority, with City, Villa, Forest and Newcastle opposing the amendments.

City were represented by their finance director Ingo Bank at the meeting, but it is understood he did not speak. Manchester United CEO Omar Berrada and Chelsea general counsel James Bonington spoke in favor of the amendments.

The city has been contacted for comment.