Man City LOSE landmark Premier League ruling after two clubs ‘switch sides’ on champions

A decision has been reached on APT rule amendments after Manchester City challenged the Premier League.

In June City launched unprecedented legal action against the Premier League in a bid to stop Associated Party Transaction rules which were brought in back in 2021.

The club claimed that previous rules were “unlawful” and submitted 165-page legal document ahead of a legal hearing where City achieved some success and were victorious in seven of their key arguments.

In order for the rules to be updated, 14 of the 20 Premier League clubs needed to be in favour of the proposed changes. However, Martyn Ziegler of The Times reported that City were not successful and that the amendments have been approved.

On Friday morning, the journalist took to X and wrote: “Breaking: Premier League clubs vote through associated party rule amendments – defeat for Manchester City.”

On Thursday The Times did reported that both Wolverhampton Wanderers and Everton were set to perform a u-turn and back the Premier League after previously voting against tougher APT rules a year ago.

Seven clubs were required in order for a veto to happen and though Aston Villa were reported to have sided with City, the outcome of a shareholders’ meeting in London means the changes will happen as planned.

The main purpose of the APT rules is to stop clubs inflating commercial deals while maintaining the competitiveness of the Premier League. City challenged the regulations and said “the Premier League’s decisions on two specific MCFC sponsorship transactions have been set aside”, leading to the Premier League consulting with clubs with a 14-page document.

According to Mike Keegan of the Daily Mail, the vote was 16 votes for and four against – with City joined by Nottingham Forest, Villa and Newcastle United but ultimately being outnumbered.

“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,” a statement from the Premier League read.

“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.”