Premier League Overhauls Fair Market Value Rules

The Premier League clubs have approved updates to the Associated Party Transaction rules, despite opposition from Manchester City. The changes aim to prevent clubs from exploiting commercial deals with associated parties at unfair market values, maintaining competitive integrity within the league.

The Premier League clubs greenlit changes to the Associated Party Transaction (APT) rules on Friday, a change that reigning champions Manchester City opposed. The APT rules are designed to prevent clubs from benefiting unfairly from commercial deals that do not reflect fair market value due to relationships with associated parties. These changes aim to uphold the league's competitive balance by precluding clubs from inflating sponsorship deals linked to their owners.

A minimum approval from 14 clubs, constituting a two-thirds majority, was necessary for the rule changes to pass, with 16 clubs reportedly voting in favor, according to the BBC. Manchester City, continuing to be a vocal opponent, has been contacted for comment by Reuters.

The Premier League emphasized that the rule changes stem from findings of an arbitration panel's recent report. These adjustments focus on integrating shareholder loans, removing recent amendments to APT rules, and refining the process for sharing relevant information from the League's 'databank' with a club's advisors. While Manchester City had earlier claimed victory over APT rule challenges, the League maintained its objectives and decision-making had been heedfully supported.

(With inputs from agencies.)