Premier League clubs have approved changes to the Associated Party Transaction (APT) rules, despite opposition from Manchester City, Aston Villa, Newcastle United, and Nottingham Forest. Manchester City was the most vocal critic, citing legal concerns after an independent tribunal deemed parts of the APT rules unlawful following their legal challenge earlier this year.
The revised rules address these legal findings, including adjustments to shareholder loan assessments, the removal of certain amendments made earlier this year, and improved processes for sharing relevant information. The goal of the APT rules remains to prevent clubs from gaining financial advantages through relationships with associated parties that are not at fair market value (FMV).
Key changes include requiring shareholder loans to undergo FMV assessments, with non-compliant loans needing adjustments or termination. Certain transitional rules clarify the treatment of existing loans, while new rules exempt loans converted to equity or repaid within 50 days from FMV assessments.
Despite Aston Villa’s co-owner lobbying for a three-month delay, 16 clubs voted in favor of the amendments. The Premier League considers this a significant step to maintain financial stability and competitive balance in the league.