Man City lose crunch Premier League vote on sponsorship rules

Premier League clubs voted to amend sponsorship rules on Friday morning despite calls from champions Manchester City for a delay.

City challenged the league’s associated party transaction (APT) rules, which assess whether deals between clubs and entities linked to their ownership represent fair market value, on competition law grounds earlier this year.

An arbitration panel found aspects of them unlawful, which City insist makes the entire set of rules “void” until the panel provides further guidance.

The Premier League instead consulted with clubs over amendments. A long meeting had been predicted by league sources to discuss this topic, but before 9.30am the Premier League confirmed clubs had approved amendments to the rules with a 16-4 majority, which the league believes now makes them lawful.

Fourteen votes are needed to pass any amendments to Premier League rules and it is understood that only City, Newcastle, Aston Villa and Nottingham Forest ultimately opposed the amendments, allowing them to pass.

This includes adding shareholder loans to the fair market value (FMV) assessment, the removal of some of the amendments made to APT rules earlier this year and changes to how clubs access the league’s databank which is used to make FMV decisions.

City had support for a postponement from Aston Villa, whose owner Nassef Sawiris told The Daily Telegraph earlier this week that a delay was needed to achieve unanimity on the rules. He also expressed concerns that pressing ahead with the amendments could lead to a further costly legal fight for the Premier League.

Nottingham Forest were also understood to be planning to support City but the picture looked positive for the Premier League on Thursday that it could get a 14-club majority.

A statement from the league said: “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.

“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.”

City have been contacted for comment.