Premier League clubs approve APT rule changes in blow to Manchester City

The Premier League has won a ­significant victory in its ­battle against Manchester City, after clubs voted decisively on Friday to change the rules on associated party transactions (APT).

While the changes are relatively minor, and the rules relate to only one aspect of the competition’s ­complicated regulations on ­spending, the outcome of the motion was significant. In a vote split 16 to four, clubs fell behind the Premier League’s leadership and ignored a call from the champions to submit a broader challenge to the rulebook.

After weeks of negotiation and acrimonious lobbying, the decision was taken promptly at a shareholders’ meeting in central London. Moved to the top of the agenda, the vote was confirmed minutes after the last delegate – City’s chief legal officer Simon Cliff – had entered. Joining City in voting against the measures were Newcastle, Aston Villa and Nottingham Forest.

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The outcome does not have any direct bearing on the other dispute involving City; the 130 charges of breaking Premier League rules that are being heard at a tribunal across the city and remain the most ­seismic legal battle in the league’s history. City deny all allegations. But the result sends a signal regarding clubs’ willingness to tolerate continuing internecine strife.

The league won the vote more strongly than had been expected, with Wolves and Chelsea both expressing support for the new rules despite having voted against previous changes when presented to them earlier this year.

APT rules relate to deals clubs strike with companies that have related ownership. City brought a legal challenge against the rules this year after adjustments were made over how to evaluate such deals.

The tribunal found that three aspects of the rules were ­unlawful, the most significant of which ­related to interest-free loans made to clubs by their owners. The tribunal ruled that such deals should now be ­considered as APTs. The Premier League believes its new rules have effectively addressed the concerns of the tribunal.

City did not speak up in the meeting, but Chelsea and Manchester United did, with United’s chief executive, Omar Berrada, articulating his club’s position. Berrada, who was City’s chief operating officer until earlier this year, argued positively for the rules and for moving beyond the acrimony.

“At a Premier League ­shareholders’ meeting today, clubs approved changes to the League’s associated party transaction (APT) rules,” read a league statement. “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.”

At the same meeting, the league said its revenue over the three-year rights period of 2025-28 would amount to £12.25bn, an increase of 17% on the previous period. This figure, up from £10.5bn, includes all commercial and broadcast revenues domestically and internationally and bucks the general trend of flatlining broadcast revenues among domestic football leagues.

The league also confirmed key dates for the 2025-26 season. It will begin on Saturday 16 August, a month after the end of Fifa’s new Club World Cup, which will feature City and ­Chelsea, and end on Sunday 24 May. The league says this will allow for more rest during the festive period, with no team playing two games “within 60 hours of each other”.