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All 20 Premier League clubs have agreed to stage an emergency meeting on Tuesday to discuss the consequences of the APT trial between Manchester City and England’s top flight.
City challenged the Premier League’s associated party transaction (APT) rules in June. These regulations were put in place to ensure that any deal between a club and another company which may have an overlap of owners or investors is conducted at “fair market value”. This is a separate case to the 115 charges the Premier League have levelled against City.
An independent arbitration panel concluded the APT case at the start of October but both parties presented the outcome as though they were victorious. These widely differing viewpoints will be resolved – theoretically, at least – at an emergency meeting between all 20 Premier League clubs on Tuesday 22 October, according to The Telegraph.
The Premier League noted that the tribunal “upheld the need for the APT system as a whole and rejected the majority of Manchester City’s challenges”. Only a “small number of discrete elements” do not currently comply with law, according to England’s top flight which can “quickly and effectively be remedied by the league and clubs”.
City delivered a scathing response to the Premier League’s framing of the case, sending out a sharp-tongued letter to the other 19 clubs in the division. City’s general counsel Simon Cliff claimed the Premier League’s statement was simply “not correct” and littered with “several inaccuracies”.
Cliff bluntly concluded: “The tribunal has declared the APT rules to be unlawful. MCFC’s position is that this means all of the APT rules are void, and have been since 2021.”
The reigning Premier League champions argued that the entire creation of the APT rules was “rushed” and “ill-thought-out” when they were introduced shortly after Newcastle United’s takeover. City implored the other clubs to avoid a “knee-jerk reaction”, warning that such action “would be likely to lead to further legal proceedings with further legal costs”.
One of the significant victories City secured from the ruling revolves around owner loans. The tribunal agreed with City that interest-free loans from generous shareholders should be included in the new APT rules, potentially complicating a common financial practice employed by numerous clubs across the division.
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