Forest and the other 19 top flight clubs have until close of business on Thursday to send information to the Premier League which could shape the drafting of new financial rules
Nottingham Forest and their top tier rivals have until the end of business on Thursday to provide information to the Premier League that could influence the creation of new financial regulations, following a legal challenge by Manchester City. The dispute revolves around a judgement from an arbitration panel concerning the league’s associated party transaction (APT) rules.
Manchester City has accused the league of misleading the other 19 clubs about the implications of this judgement. The APT rules aim to ensure that commercial deals between clubs and entities connected to their ownership are conducted at fair market value (FMV), preventing these deals from being artificially inflated to increase revenue.
City argue the APT rules are entirely void because the judgement, released on Monday, found certain elements of them to be in violation of competition law. However, the Premier League maintains that the judgement largely supports the APT rules and the principles they represent, meaning only the aspects found to be in breach need to be revised.
The PA news agency reports the league has requested further clarification from the arbitration tribunal regarding the implications of the judgement. In the meantime, it is collaborating with clubs to update the sections of the rulebook deemed unlawful.
The most significant change would involve the inclusion of shareholder loans as a transaction to be evaluated for Fair Market Value (FMV). Clubs have been requested to provide information about their current and past three years’ mix of shareholder loans and loans converted into equity by the end of business on Thursday. Reds owner Evangelos Marinakis has previously converted loans into shares, a move which is viewed as a sign of his commitment to the club.
This data will assist the league in drafting recommendations to be presented to the Financial Controls Advisory Group (FCAG) and Legal Advisory Group (LAG) on Tuesday, followed by a broader discussion with all clubs next Thursday morning. However, it is not anticipated that any rule changes will be voted on at this meeting.
Leave a Reply