Premier League Clubs Approve Changes to Associated Party Transaction Rules Despite Legal Challenge by Man City

Premier League clubs have successfully implemented changes to the competition's Associated Party Transaction (APT) rules, overcoming the challenge posed by Manchester City.

Both sides claimed victory last month after an arbitration panel found that some elements of the league's APT rules were unlawful.

But the Premier League has secured the minimum 14 votes it needed from member clubs to pass the amendments, with Man City, Aston Villa, Newcastle and Nottingham Forest understood to have voted against them.

Arsenal, Bournemouth, Brentford, Fulham, Liverpool, Manchester United, West Ham and Wolves supported the league with evidence during the summer's arbitration.

The Premier League asked clubs to vote on changes it believes will make the rules lawful and compliant with UK competition law.

This includes adding shareholder loans to the fair market value (FMV) assessment, the removal of some of the amendments made to APT rules earlier this year and changes to how clubs access the league's databank, which is used to make FMV decisions.

Man City's general counsel Simon Cliff wrote to the FA and the 19 other clubs, warning them against voting for amendments which "entail material legal risk".

A statement from the league said: "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."

Manchester City have been approached for comment by News.