Tuesday’s meeting is the first time all Premier League clubs have gathered since the panel judgment was published
on October 7. Manchester City accused the league of “misleading” clubs about what the judgement meant, with the
four-time champions arguing all the APT rules are now void. Clubs, including Nottingham Forest, will discuss how to
include shareholder loans within the league’s associated party transaction (APT) rules after an arbitration panel said
the rules breached competition law because they excluded such loans.
The Premier League is moving on with correcting the parts of the rules that the arbitration panel declared to be
illegal while also requesting clarification from the panel regarding the implications of its ruling.
In order to prevent unduly inflated arrangements that are made to increase revenue, the APT regulations aim to
guarantee that business dealings between clubs and companies associated with their ownership are conducted at fair
market value (FMV).
By October 10th, clubs were requested to provide the league with information regarding the percentage of
shareholder loans and loans converted to equity that they now possessed and had possessed over the previous three
years.
Clubs agree that new loans made by shareholders alone may be evaluated for fair market value (FMV) rather than
current loans. The interest rate that would be applied to such a loan on the open market, which could differ from
club to club based on credit score, might be examined in an FMV evaluation.
Crucially, under the profitability and sustainability rules (PSR), this interest expense would then have to be factored
into a club’s computation, which might put more clubs at risk of breaking the regulations.
The PA news agency is aware that no rule amendments will be put to a vote during Tuesday’s meeting.
In order for clubs to base their representations on the data that the Premier League board is using as a comparison
when it is assessing FMV, the rules must also be amended to allow clubs to access the databank information.
The league board’s choice to make a conclusion without first allowing clubs to comment on the data was deemed
procedurally unfair by the tribunal.
It is also planned to reword some of the regulation changes that were approved by the vote in February.
Two league working groups have previously reviewed the suggestions that the clubs will address on Tuesday. One of
these groups is the Financial Controls Advisory Group (FCAG), which includes Ingo Bank, the chief financial officer
of the City Football Group.
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