Premier League clubs are set to vote later this month on amendments to the financial rules challenged by Manchester City.
The champions had triggered an arbitration hearing by challenging the league’s associated party transaction (APT) rules on competition law grounds.
The arbitration panel found the rules – which are designed to ensure deals between clubs and entities linked to their ownership are done for fair market value (FMV) – were unlawful because they excluded shareholder loans.
City said that meant all the APT rules were void and accused the Premier League of “misleading” the other 19 clubs in its initial interpretation of the panel judgement.
Club statement
— Manchester City (@ManCity) October 7, 2024
However, rather than be scrapped, the rules are now set to be amended at a top-flight club shareholders’ meeting in central London on November 22.
It follows a period of consultation between the league and its clubs since the publication of the panel judgement on October 7.
Shareholder loans are set to be included in the amended rules but it is understood FMV tests will not be applied retrospectively to loans already agreed.
Clubs were asked to share details of shareholder loans it has, or has had, over the last three years, a period running either side of the APT rules first being introduced in December 2021.
An FMV assessment of shareholder loans might look at what rate of interest would be charged on such a loan in the open market, which could vary from club to club depending on their credit score.
Other amendments to the rules will grant clubs earlier access to a databank used by the Premier League in the FMV decision-making process and will roll back changes to the APT rules made in February.
