Premier League clubs have approved changes to the Associated Party Transaction (APT) rules despite Manchester City's challenge.
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Man City lose APT battle against Premier LeaguePremier League held vote for system changes16 clubs vote in favour while four vote againstFollow GOAL on WhatsApp! 🟢📱Getty Images SportWHAT HAPPENED?
Both Manchester City and the Premier League declared victory in October following an arbitration panel's ruling over APTs, which attempt to guarantee that sponsorships with businesses connected to club owners reflect fair market value and are not exaggerated. The panel found two parts of the rules to be illegal, therefore some of City's complaints were upheld. Following the tribunal, City condemned the Premier League for its "misleading" assumption that the regulations could be quickly changed and declared them "void." The Premier League put forward a number of revisions after meetings of its Financial Controls Advisory Group and Legal Advisory Group ahead of a vote in London.
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Clubs approved the modifications to the Associated Party Transaction (APT) regulations in less than 30 minutes at a meeting held on Friday. Clubs cast 16 votes in favour and four votes against. City and Aston Villa, who had both written to clubs prior to the meeting to ask for support, were two of the clubs that voted against the amendments alongside Newcastle United and Nottingham Forest. At least 14 Premier League teams had to vote in favour of the amendments for them to be approved.
(C)Getty ImagesWHAT THE PREMIER LEAGUE SAID
The Premier League released a statement that 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."
WHAT NEXT FOR MAN CITY?
The defending Premier League champions are yet to comment on the Premier League's victory over them, and may first look to improve conditions on the pitch as they are on a four-game losing streak. They play against Tottenham Hotspur on Saturday, coming off the back of the good news of Pep Guardiola's contract extension.
