Manchester City have lost their latest battle with the Premier League over financial rules.
At a meeting today the required 14 clubs backed changes to governing deals with companies linked to their ownerships after elements were found to be “unlawful” following a case brought by City.
Sky News understands four clubs – City, Newcastle, Aston Villa and Nottingham Forest – voted against amendments to the Associated Party Transactions (APT) rules but did not speak at the meeting in central London.
The changes particularly impact City, with their Abu Dhabi ownership and array of UAE sponsorship, and Saudi-owned Newcastle United with their deals from the kingdom.
Changes to Premier League regulations over the fair market value of deals are intended to make them compliant with competition law.
The fair market value of shareholder loans now has to be factored into assessments about the profit and sustainability of clubs which determine how legitimate income is. Clubs can only make losses of £105m over a three-year period and if they do not comply, they could face points deductions.
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In the meeting, it is understood two people spoke up in favour of the rule changes – James Bonington, Chelsea’s chief legal and corporate affairs officer, and Manchester United chief executive Omar Berrada.
Mr Berrada was on the other side of the argument until last season as a leading executive at City.
The reigning Premier League champions are currently embroiled in a bigger, ongoing battle with the Premier League contesting 115 charges going back to the 2009-10 season.
City have privately warned against legal challenges to the rule changes voted through today.
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The Premier League said: “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.”
It added: “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 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 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.”
