Premier League issue 174-word statement after vote on APT rules as Newcastle United’s position ‘revealed’
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Last month, the results of Manchester City’s legal challenge were released with both the Citizens and Premier League claiming victory from the hearing. An initial meeting to vote on changes to those rules, in light of City’s case, was postponed but took place in London on Friday morning.
16 of the 20 Premier League clubs reportedly voted to changes put forward on Associated Party Transaction (APT) rules with reports that Manchester City, Nottingham Forest, Aston Villa and Newcastle United being the four teams to vote against implementing these changes. Interest-free shareholder loans were the main bone of contention within these rules with a few clubs heavily-reliant on these loans.
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Hide AdA statement released by the Premier League read: ‘At a Premier League Shareholders’ meeting today, clubs approved changes to the League’s Associated Party Transaction (APT) rules.
‘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.
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Hide Ad‘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 results of this vote will likely impact Newcastle United’s ability to grow and expand rapidly and will ensure that existing barriers to their expansion remain in place. For these changes not to have passed, seven clubs would have been needed to vote against them.
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