Manchester City has faced a setback in its challenge to the Premier League’s financial regulations, as new amendments were approved during a pivotal meeting on Friday.
The changes, supported by the required 14 clubs, address Associated Party Transactions (APT) to ensure compliance with competition law, following concerns raised in a case brought by City. Despite opposition from Manchester City, Newcastle United, Aston Villa, and Nottingham Forest, the amendments were passed without public dissent from the dissenting clubs at the central London meeting.
The revisions target deals involving entities linked to club ownerships, particularly affecting Manchester City’s Abu Dhabi-based sponsors and Newcastle’s Saudi ownership. The new rules require shareholder loans' fair market value to be included in profitability assessments, tightening restrictions to ensure clubs remain within the permitted £105 million loss limit over three years. Non-compliance risks penalties, including potential points deductions.
Chelsea’s legal and corporate affairs officer, James Bonington, and Manchester United’s chief executive, Omar Berrada, were reportedly the only attendees to voice support for the changes during the meeting.
These updates signify a significant shift in the Premier League's approach to ensuring financial integrity, with implications for clubs relying on substantial investment from linked entities.
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