The Premier League has written to its clubs setting out proposed changes to its rules after last month’s publication of a landmark verdict in a legal battle with Manchester City over rules governing commercial deals.
Both sides claimed victory after the decision of an arbitration panel following City’s challenge against the league’s associated party transaction (APT) regulations, which seek to ensure sponsorship deals with companies linked to clubs’ owners represent fair market value and are not artificially inflated.
City had some complaints upheld, with two aspects of the rules deemed unlawful by the tribunal. It said low-interest shareholder loans should not be excluded from the scope of APT rules, and that changes made in February to toughen up the regulations also breached competition law.
Following the ruling, City claimed the rules were “void”, and expressed “concern” over the Premier League’s suggestion that new APT rules could be passed swiftly, signalling possible further legal action if there was a “knee-jerk reaction”.
But following meetings of its Legal Advisory Group and Financial Controls Advisory Group, the Premier League has now written to all 20 of its clubs proposing a number of amendments before they meet on 22 November.
In the letter – which has been seen by BBC Sport – clubs are told that the proposed changes are also the result of legal advice from a barrister.
One suggested amendment relates to the definition of ‘fair market value’, which is described in the current APT rules as “the amount for which an asset, right or other subject matter of the transaction would be sold, licensed or exchanged, a liability settled, or a service provided, between knowledgeable, willing parties engaging in an arm’s length transaction in normal market conditions”.
In what could be seen as a potential easing of the restrictions, it is proposed that the definition is amended to “the amount for which an asset, right or other subject matter of the transaction could be sold, licensed or exchanged, a liability settled, or a service provided, between knowledgeable, willing parties in an arm’s length transaction”.
If voted through, the softening of “would” to “could”, and the deletion of the words “in normal market conditions” could potentially give clubs more scope to agree commercial deals with associated parties.
It is also proposed that the exclusion of shareholder loans from APT rules is reversed.
It is unclear whether the suggested amendments will receive the required two-thirds majority to be passed.
Both City and the Premier League declined to comment.