Dispute between Manchester City and the Premier League about sponsor regulations comes to an end
Manchester City Accepts Updated APT Rules Following Arbitration
In a significant development, football club Manchester City has accepted the amended rules for 'associated party transactions' (APT) that are currently being implemented by the Premier League. This acceptance comes after the club launched arbitration proceedings against the original rules in January 2023.
The APT rules, initially introduced in December 2021 following the Saudi-led takeover of Newcastle United, were successfully challenged by Manchester City last year. A tribunal found the original rules unlawful on multiple grounds. Following the tribunal's decision, the Premier League consulted with clubs on amendments to the rules.
The details of the amended APT rules are not specified, but it is known that an assessment of shareholder loans for fair market value was incorporated into the rules last November. This change was part of the amendments that 16 teams voted in favour of at a meeting last November.
It is important to note that the fair market assessment under the APT rules applies only to ongoing and future loans, not retrospectively. This means the rules do not have any impact on past transactions.
The football club and the Premier League have agreed to make no further comment on the matter. However, City strenuously denies the charges against it in the independent commission hearing, which took place between September and December last year and was initiated after City was charged by the Premier League in February 2023.
The independent commission, which is currently investigating over 100 allegations of breaches of the leagueβs financial rules against Manchester City, is not explicitly named in the provided search results. The outcome of this hearing is still awaited.
The acceptance of the amended APT rules by Manchester City may have prevented a significant impact on the league, as the rules help prevent entities linked to club owners from overvaluing sponsorships and commercial transactions.
The APT rules were originally introduced to address concerns about the influx of foreign investment into English football, specifically in the wake of the Saudi-led takeover of Newcastle United. The rules aim to ensure transparency and fairness in financial dealings within the Premier League.
