Premier League clubs voted on Friday to amend sponsorship rules, despite calls from some clubs, including champions Manchester City, to delay the decision.
The amended rules aim to ensure that sponsorship deals between clubs and entities linked to their ownership reflect fair market value. This decision comes after Manchester City challenged the league’s Associated Party Transaction (APT) rules earlier this year on competition law grounds.
Manchester City has been a dominant force in English football since Sheikh Mansour bin Zayed Al Nahyan, Vice President of the United Arab Emirates, took over the club in 2008. However, rivals have often questioned the legitimacy of sponsorship contracts from companies linked to Abu Dhabi.
The APT case is separate from the 115 Premier League charges Manchester City face for alleged historical breaches of financial regulations. An arbitration panel deemed some aspects of the APT rules unlawful, sparking disagreements between Manchester City and the league over the next steps.
Key amendments to the rules include treating shareholder loans as APTs, requiring them to comply with fair market interest rates. The rule amendment passed with a 16-4 majority, despite opposition from Manchester City, Aston Villa, Nottingham Forest, and Newcastle United.
“The amendments address the findings of an arbitration tribunal following Manchester City’s legal challenge earlier this year,” the Premier League said in a statement. “The purpose of the APT rules is to ensure clubs do not benefit from commercial deals or cost reductions that are not at fair market value due to relationships with associated parties. These rules safeguard the league’s financial stability, integrity, and competitive balance.”
