Premier League clubs rebel against Man City and agree new financial rules in huge win for Richard Masters
PREMIER LEAGUE clubs have voted in favour of new financial rules – in a huge win for embattled chief exec Richard Masters.
Manchester City had led the charge against the tweaks to the Associated Party Transaction rules.
City had warned the other 19 top-flight clubs that the changes – backed by an independent KC – remained unlawful.
But at this morning’s meeting of the shareholder clubs at a central London hotel, the measures were passed by 16 votes to four.
League bosses propelled the matter to the top of the agenda in a sign of their confidence.
And in a surprise twist, Chelsea, who had been thought to be in City’s corner, backed Masters and spoke up – alongside Manchester United – in support of the “need for rules”.
It is understood that Aston Villa, Newcastle and Nottingham Forest joined City in voting “no”.
But the scale of the support for the Prem board, which significantly exceeded expectations, is a huge victory for Masters.
League chiefs tabled the new regulations after an Arbitration Tribunal of three senior former judges found aspects of the rules, introduced in February despite fierce opposition led by City, were “unlawful”.
Senior commercial expert Daniel Jowell KC advised the revised rules met the demands of the Arbitration Panel and commercial law.
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In a statement, a Prem spokesperson said: “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.”
The spokesman added: “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.”