Manchester City suffers setback from other clubs over 'APT' rules

Premier League clubs have approved changes to the league's Associated Party Transactions (APT) rules, delivering a significant setback to Manchester City. Earlier this year, the City contested the APT rules—designed to evaluate whether transactions between clubs and entities tied to their ownership reflect fair market value—on grounds of competition law.

An arbitration panel identified certain aspects of the rules as unlawful, which Manchester City argues should render the entire set of regulations void until the panel offers further clarification. 

Nevertheless, the vote to update the league's rules on Advanced Player Transfers proceeded as planned, requiring support from 14 of the 20 clubs to be approved. City was optimistic about the outcome, particularly with notable backing from Aston Villa.

Villa's strong public endorsement of the City's cause and their demand to delay the vote by 90 days has not swayed the situation, as reports indicate that up to 16 clubs are firmly in favour of the proposed changes.

Statement from Premier League

“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."

"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 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.”

The Premier League champions initially raised concerns about the legality of recent changes, having filed a legal challenge in June after the Premier League dismissed their claim regarding a new agreement with shirt and stadium sponsors Etihad Airways, which they believed reflected a fair market price.

Aston Villa has actively engaged in this conversation, with club chairman Nassef Sawiris reaching out to the other 19 clubs to think for consideration and propose a postponement of the vote.