Premier League clubs have voted to change sponsorship rules in the top-flight, despite heavy opposition from Manchester City.
Manchester City Did Not Want the APT Rules To Be Changed
The vote to update the league’s rules on Associated Party Transaction (APT) came about after a legal dispute between the Premier League and Manchester City.
The Premier League rejected the champions’ claim that a new deal between the club and their shirt and stadium sponsors Etihad Airways had been at a fair market price (FMV).
Man City believed sections of the previous rules were “unlawful”, leading to the ballot being formed.
Premier League clubs have approved changes to the competition's Associated Party Transaction (APT) rules despite the challenge of Manchester City. pic.twitter.com/cAFQGR0FDq
— Sky Sports Premier League (@SkySportsPL) November 22, 2024
The ballot needed 14 of the 20 Premier League clubs to vote in its favour to make the amendments. City reportedly warned their Premier League counterparts to reject the new amendments and vote against them.
However, on Friday, 16 of the 20 English top-flight clubs voted to change the rules.
Premier League Say Rule Changes Come Following Man City’s Legal Challenge
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 (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.”
Premier League statement on this morning’s APT vote following the City legal challenge pic.twitter.com/Hje9NE4kGy
— Miguel Delaney (@MiguelDelaney) November 22, 2024
What Are APT Rules And Why Are They There?
The APT rules are in place to ensure clubs cannot benefit from commercial deals or reductions in costs that are not at Fair Market Value by virtue of relationships with Associated Parties.
These rules are intended to to maintain the Premier League competitiveness and is also there to prevent clubs from inflating the value of any sponsorship deals between clubs and related companies.
