Tribunal Ruling on Premier League’s APT Rules
The Premier League’s Associated Party Transaction (APT) rules, which were in place from 2021 to 2024, have been declared "void and unenforceable" by a tribunal. This significant ruling comes after a legal challenge initiated by Manchester City. The APT rules were designed to prevent clubs from benefiting from commercial deals with companies linked to their owners that were above "fair market value." The tribunal’s decision, however, does not affect the "valid operation" of the new APT rules, which were implemented in November 2022, despite the ongoing legal challenge against these amendments.
Background of the Legal Challenge
Last year, an independent arbitration panel found against certain aspects of the Premier League’s APT regulations after Manchester City took legal action. The Premier League, in response, maintains that the tribunal’s ruling does not invalidate the current APT rules, which they assert are still "valid and enforceable" and remain in "full force." Despite the tribunal’s decision, the Premier League stands firm in its belief that the new APT rules are lawful and will continue to enforce them.
Impact on the Premier League
The tribunal’s ruling is not a judgment on the November amendments to the APT rules, which are currently being challenged. The conclusion of the tribunal states that the APT rules and amended APT rules were unlawful in three specific respects, and these cannot be severed from the remaining rules, rendering the APT rules as a whole void and unenforceable. This decision is a significant setback for the Premier League, as it raises questions about the legality and enforceability of the rules that were in place from 2021 to 2024.
Premier League’s Response
In a statement, the Premier League emphasized that the tribunal’s decision does not impact the valid operation of the new rules. They noted that the tribunal has not made any findings regarding the validity and effectiveness of the new APT rules, and whether the decision benefits any club depends on the outcome of the ongoing legal challenge. The Premier League remains committed to the new APT rules and is pressing for a swift resolution of the matter. Clubs are still required to comply with all aspects of the system, including submitting shareholder loans for fair market value assessment.
Implications for the Football Community
This ruling is a significant blow to the Premier League, as it invalidates the APT rules up to November 2024. Any club that had a case heard under these rules is now in a position to potentially launch a damages claim. One source has suggested that this could result in the Premier League, and by extension its clubs, being liable for tens of millions of pounds. This financial impact could have far-reaching consequences for the league and its operations.
Focus on Richard Masters
The tribunal’s decision will also shine a spotlight on Richard Masters, the Premier League’s chief executive. Masters confirmed the changes to the APT rules in November 2022, despite being cautioned against implementing them by clubs such as Manchester City and Aston Villa. The outcome of the ongoing legal challenge will be crucial in determining the future of the APT rules and the Premier League’s regulatory framework. The league continues to believe in the legality of the new APT rules and is committed to resolving the matter as quickly as possible.
