Premier League proposes amendments to APT rules

Following last month’s landmark ruling in a legal battle between Manchester City and the Premier League over rules governing commercial deals, the league has written to its clubs with proposed proposed changes to its rules.

Following City’s challenge to the league’s associated party transaction (APT) regulations, which require that sponsorship deals with businesses linked to clubs’ owners represent fair market value and are not artificially inflated, both sides prevailed in court.

The tribunal found that two aspects of the rules to be unlawful in the case of City, which were upheld. It claimed that regulations that were amended in February to strengthen the regulations and that low-interest shareholder loans should not be exempt from APT rules.

Following the ruling, City claimed the rules were “void”, and expressed “concern” over the Premier League’s suggestion that new APT rules could be passed swiftly, signalling possible further legal action if there was a “knee-jerk reaction”.

Clubs are informed that the proposed changes are also the result of legal counsel from a barrister in the letter, which has been seen by BBC Sport.

One suggested amendment relates to the definition of ‘ fair market value’, which is described in the current APT rules as “the amount for which an asset, right or other subject matter of the transaction would be sold, licensed or exchanged, a liability settled, or a service provided, between knowledgeable, willing parties engaging in an arm’s length transaction in normal market conditions”.

In what could be seen as a potential easing of the restrictions, it is proposed that the definition is amended to “the amount for which an asset, right or other subject matter of the transaction could be sold, licensed or exchanged, a liability settled, or a service provided, between knowledgeable, willing parties in an arm’s length transaction”.

If voted through, the softening of “would” to “could”, and the deletion of the words “in normal market conditions” could potentially give clubs more scope to agree commercial deals with associated parties.

Additionally, it is suggested that shareholder loans be removed from APT regulations.

The outcome of the required two-thirds majority vote for the proposed amendments is uncertain.