One of the clubs in the Premier League may bring forth a legal dispute over recently approved regulations that restrict their ability to purchase players or form sponsorship agreements with entities connected to their ownership.
A change in regulations regarding associated party transactions (APTs) was sanctioned by clubs during a league gathering on Friday, following a warning of potential legal consequences. The specific club contemplating legal arbitration has not been disclosed, although it is believed to be the reigning champions, Manchester City.
The league is currently embroiled in legal battles with Everton, Nottingham Forest, and City over multiple alleged violations. However, most clubs in the competition are pushing for stricter rules regarding the involvement of associated parties. Therefore, a new lawsuit would not be ideal for the league.
League officials regard the new rules as clarifying the process by which APTs are assessed, with clubs expected to show that – in any deal conducted with a club or business in the same ownership – they have struck fair market value. Critics say the rules were changed to make it harder for such deals to be done. Changes were rejected in a vote last November but those proposals were adjusted before Friday’s vote, including by removing personal liability for directors involved in striking such deals.
The league stated that after thoroughly examining the current rules regarding transactions with associated parties and protocols for assessing fair market value, clubs have come to a mutual agreement to make amendments that will improve the system’s efficiency and accuracy. Manchester City has been contacted for their response.
The most recent meeting of Premier League shareholders stretched over two days as they worked to address various matters. One topic of discussion was the ongoing absence of an agreement on financial redistribution to the EFL. The league announced that a new schedule has been established for reaching a deal with its clubs, following a pause in the process before the holiday season. In addition, a selection of Premier League clubs extended an invitation to various EFL teams for a confidential discussion on these matters during the current week.
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The Premier League is considering the option of hosting another pre-season tour in the United States in 2025. Additionally, clubs have reached an agreement to commit to environmental sustainability. This will involve calculating the league’s overall carbon footprint.
Source: theguardian.com
