The Premier League have told clubs that their Associated Party Transaction rules (APT) remain “in full force” despite regulation of deals between 2021 and 2024 being ruled as “void and unenforceable” by a tribunal.
In October, both the Premier League and Manchester City, who brought the initial legal challenge, claimed victory after an arbitration panel released its judgement on APT rules.
Associated Party Transactions relate to sponsorship deals between a club and companies linked to their owners, and whether or not such deals represent “fair market value.” Two of City’s initial complaints were upheld, but their bid to scrap the rules was rejected.
The case is unrelated to the hearing into the 115 charges for City’s alleged breaching of the Premier League’s financial rules
In a conclusion published on Friday, the tribunal said the parts of the regulation deemed “unlawful” meant that “the APT rules as a whole are void and unenforceable” — referring to the APT rules that pre-existed the November update.
However, the Premier League on Friday insisted in a statement that new rules voted through at that time remain in place.
The statement read: “An Arbitration Tribunal has determined the effects of its first award published last year relating to Manchester City’s legal challenge of the Premier League’s previous Associated Party Transaction (APT) rules.
“The Tribunal’s decision has found that the three narrow aspects of the old APT rules, previously found to be unlawful, cannot be separated from the rest of the previous rules as a matter of law. The result, the Tribunal has determined, is that the previous APT Rules, as a whole, are unenforceable.
“However, the previous APT rules are no longer in place, as clubs voted new APT rules into force in November 2024. This decision expressly does not impact the valid operation of the new rules.
“The Tribunal has made no findings as to the validity and effectiveness of the new rules. The Tribunal states that whether its decision has any benefit to the club, therefore, depends on whether the new APT rules are found to be lawful as part of the second challenge issued by the club last month.
The league said it continues to believe that the new APT Rules are valid and enforceable and is pressing for an expeditious resolution of this matter.
“The new APT rules are in full force and clubs remain required to comply with all aspects of the system, including to submit shareholder loans to the Premier League for Fair Market Value assessment.”
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