Manchester City is expected to warrant a rule modification in the Premier League. U-turn – Arsenal may be the most affected

The Premier League is poised to implement rule changes as a result of Man City’s legal victory. Arsenal could be the most affected by a U-turn.Arsenal could be among the clubs that suffer the most if the proposed new Premier League rule changes are voted through in the aftermath of Manchester City’s court victory.

The Premier League was sued by City for the Associated Party Transaction (APT) sponsorship rules, which they claimed were illegal. A panel of three retired justices concurred with City’s arguments, concluding that

 

the APT regulations violated UK competition law and that the Premier League abused its position of authority on the matter. One of the arguments presented by City was that certain clubs receive substantial shareholder loans from their proprietors, which are not subject to APT regulations and are not subject to interest. Currently, it is being suggested that this exemption be eliminated.

To fit the outcome of City’s trial, the Premier League has softened some of the APT rule language in recommendations provided to clubs before of a November 22 vote.

 

One such modification, according to BBC Sport, is substituting “could” for “would” when referring to “fair market value” in terms of valuing sponsorship deals. Between knowledgeable, willing participants in an arm’s length transaction, the new language would be “the amount for which an asset, right or other subject matter of the transaction could be sold, licensed or exchanged, a liability settled, or a service provided”.

 

 

Furthermore deleted from the conclusion of that definition is the phrase “in normal market conditions,” which is thought to provide clubs more freedom in accepting commercial and sponsorship agreements with affiliated companies. Fourteen of twenty clubs will have to endorse the motion for it to go through. Everton (£451m) and Brighton

 

(£373m) are top of the list of the clubs most benefiting from shareholder loans; Arsenal received £259m. While City is among six clubs who got no shareholder loans together with Manchester United, Newcastle, Tottenham, West Ham and Southampton, Chelsea and Liverpool round out the top five.