Man City Lose Landmark Premier League Sponsorship Vote As Clubs Turn Against Champions

Premier League clubs have approved changes to the league’s Associated Party Transactions (APT) rules in a bitter blow to Manchester City.

City challenged the 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.

Despite this, the vote to update the league’s rules on APTs was held regardless, and needed to be backed by 14 of the 20 clubs to pass. City had hoped that they were on course for victory having received high-profile backing from Aston Villa in the run-up to the decision.

However Villa’s public endorsement of City’s cause and calls for the vote to be pushed back by 90 days has not proven to be enough, with as many as 16 clubs believed to be in favour of the changes.

A Premier League statement read: “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.”

The Premier League champions had believe the changes to be “unlawful”, having initially brought the legal challenge in June when the Premier League rejected their claim that a new deal between the club and shirt and stadium sponsors Etihad Airways had been at a fair market price.

Villa had been particularly vocal on the issue in recent weeks, with club chairman Nassef Sawiris writing to the other 19 clubs to urge caution and call for a delay to the vote.

In statement to the Daily Telegraph, Sawiris said: “In our view, a vote in 90 days on amended terms taking into consideration the tribunal’s findings will have a significantly greater chance of securing the unanimous support of all 20 Premier League clubs.”