The latest on Manchester City’s ongoing legal battle with the Premier League as Everton and Liverpool were set to attend a meeting to discuss potential rule changes
Everton and Liverpool were set to attend a meeting called by the Premier League today (Wednesday) to vote on proposed amendments to top-flight sponsorship rules. Changes were triggered by an early outcome in Manchester City’s ongoing legal challenge.
Completely separate to the case over the 115 charges of financial misconduct Man City are accused of and deny, the initial outcome from an independent tribunal in October found certain elements of the English top-flight’s rules were unlawful. Interest was focused on those particularly covering Associated Party Transaction (APT) rules.
They are designed to ensure fair market value (FMV) deals between clubs and entities linked to their ownership, but as they excluded shareholder loans the ruling was that they were unlawful. Man City argued this rendered all APT rules void and accused the Premier League of misleading the other 19 clubs in its initial interpretation of the panel judgement.
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In the aftermath league officials asked for the suggestions of both Everton and Liverpool, along with the rest of their Premier League rivals, as to how the rules should be amended to remain fair but include shareholder loans. Now The Times claims that a 14-page proposal, one that they have seen, outlining the changes that would be made to APT rules in the aftermath of last month’s ruling has been sent to all 20 clubs.
The changes were due to be discussed at a meeting on November 22 in London where clubs are said to have voted on whether these amendments will be passed. The report explains that the exact changes to be voted on have been finalised in meetings between the Premier League’s legal advisory group and financial controls advisory group.
One would allow clubs access to the relevant data that the Premier League uses to assess if APTs meet FMV before they reach the appeal process against any future financial charges, rather than only afterwards like before. The other would mean the exclusion of shareholder loans and only equity injection investments remaining exempt from APTs.
As is always the case with meetings between Premier League clubs, a new motion requires a 14 out of 20 majority to be in favour at least in order for it to pass.
This subject has been a contentious matter amongst top-flight clubs, who have their own interests to look after. Everton, for example, at the end of the 2022/23 campaign were £451m in debt through shareholder loans – the highest amount of any Premier League club.
Liverpool were seventh on this list with £71m at that time too, whereas Man City were one of six clubs who had no outstanding debts to their shareholders. With a swift turnaround until this matter is voted on, the Premier League is evidently attempting to resolve matters quickly amidst their overall legal battle with the title winners of the past four years.
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