Man City ‘shock’ PL rivals as Premier League ‘open door to huge deals’ in 14-page APT amendment
The Premier League has softened its definition of ‘fair market value’ as one of its amendments to the rules on Associated Part Transactions (APTs) which are set to be voted on by Premier League clubs later this month.
The changes were forced after Manchester City claimed victory over the Premier League after an independent tribunal concluded last month that certain elements of the rules were “unlawful”.
The Times has had eyes on the 14-page document detailing the Premier League’s proposed rule changes on APTs, which has now been circulated to clubs ahead of the vote on November 22, which if passed would see ‘significantly looser’ restrictions, ‘opening the door for huge deals’.
The focus of the document is on thee key parts of the rules: the exclusion of shareholder loans, the definition of ‘fair market value’ and – in what The Times believe could be ‘of huge significance’ – the removal of the words ‘in normal market conditions’ from the existing rules.
The report states:
‘The panel cited the exclusion of shareholder loans — interest-free loans from companies or individuals that have more than a 5 per cent stake in the club — as a key area that needed to be addressed, with the English champions arguing that the cost of such loans should be included in the League’s financial regulations.
‘In the proposal document, the definition of “fair market value” has been softened slightly from whether the amount “would” be sold to “could” be sold between willing parties.
‘Of potentially huge significance, however, is the fact that the words “in normal market conditions” have gone from the existing rules, along with three paragraphs outlining what that actually means. City’s legal dispute was sparked by a block that was placed on a large new sponsorship deal with Abu Dhabi-owned Etihad Airways, but the rule change would seem to make allowances for the value an oil-rich Middle-Eastern state may place on an association with a top-flight English football club.’
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Clubs will meet at the Nobu Hotel in Portman Square in a couple of weeks’ time with ‘Premier League officials hoping this brings some peace to a situation that has escalated into civil war between rival clubs’.
The Premier League chiefs hope for a speedy resolution given they’re also currently engaged in a battle with Manchester City over their 115 alleged breaches of financial fair play, but City – for some reason – want to drag the process out, sparking ‘shock’ among their rival clubs in the process.
The report adds:
‘Nevertheless, it will be interesting to see if further concerns are raised given the speed with which the Premier League is now trying to resolve the matter against the backdrop of the hearing into the 115 charges levelled at City for alleged financial rule breaches.
‘The Premier League’s claim that the APT rule amendments could be implemented “quickly and effectively” was met with an immediate challenge by City’s legal counsel, Simon Cliff, who accused Richard Masters, the Premier League chief executive, of “misleading clubs” and warning against a “kneejerk reaction”.
‘Cliff said it was a time “for careful reflection and consideration”, inviting clubs to communicate directly with him if they wanted a more detailed read-out on the 175-page award document published by the tribunal. This came as a shock to some clubs, even if others have proved more sympathetic to City’s cause.
‘If the new amendments, which have been drafted with the assistance of “leading counsel, Daniel Jowell KC”, are voted in by the clubs on this occasion, they will be effective immediately.’