Premier League Tightens Rules on Commercial Deals After Club Vote

• Nov 22, 2024

Premier League clubs have approved new rules to regulate commercial deals, with 16 of the 20 teams voting in favor of the changes during a meeting in London on Friday. The amendments to the Associated Party Transaction (APT) regulations aim to ensure fairness in sponsorship and financial agreements, despite opposition from Manchester City, Newcastle United, Nottingham Forest, and Aston Villa.

The APT rules are designed to prevent clubs from benefiting unfairly from commercial deals or sponsorships involving businesses linked to their owners unless the agreements align with fair market value. The new amendments now include provisions that require shareholder loans to adhere to fair market interest rates, building on earlier changes made this year.

According to the Premier League, the purpose of the APT regulations is to maintain a level playing field by ensuring that associated parties cannot manipulate financial arrangements to give clubs an undue advantage. A minimum of 14 votes was needed to pass the updated rules.

The changes come after an independent arbitration panel reviewed the APT regulations and found certain elements of the previous rules unlawful. While the panel acknowledged that adjustments were necessary, it also upheld the broader purpose of the rules as vital for fairness within the league.

Chelsea and Manchester United were among the clubs that strongly supported the amendments and urged others to back them during the meeting. However, Manchester City and Aston Villa opposed the changes and attempted to delay the vote, lobbying other clubs to consider a postponement.

Manchester City, whose financial power has been under scrutiny since its 2008 acquisition by Sheikh Mansour bin Zayed Al Nahyan, previously challenged the APT rules on competition law grounds. Despite some legal setbacks, the recent vote solidifies the Premier League’s commitment to ensuring that financial practices align with competitive fairness.

Aston Villa, owned by Nassef Sawiris, argued that a delay could allow for more comprehensive discussions, while Newcastle United and Nottingham Forest joined in voting against the changes. Newcastle, backed by the Saudi Public Investment Fund, has faced challenges in advancing its competitive goals following its 2021 takeover.

With the amendments now in place, Premier League clubs must ensure compliance with the stricter financial oversight to maintain competitive balance within the league.