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Man City: Premier League clubs approve changes to Associated Party Transaction rules despite legal challenge

Premier League clubs have approved changes to the league's Associated Party Transaction (APT) rules despite the challenge from Manchester City.

Both sides claimed victory last month after an arbitration panel found some elements of the league's APT rules were illegal.

But the Premier League has collected the minimum 14 votes needed from its member clubs to approve the amendments. Man City, Aston Villa, Newcastle and Nottingham Forest are said to have voted against.

Arsenal, Bournemouth, Brentford, Fulham, Liverpool, Manchester United, West Ham and Wolves supported the league with evidence during the summer's arbitration.

The Premier League asked clubs to vote on changes they believe will make the rules legal and compliant with UK competition law.

This includes adding shareholder loans to the fair market value (FMV) assessment, removing some of the changes made to the APT rules earlier this year and changes to the way clubs access the league's database , which is used to make FMV decisions.

Man City's general counsel Simon Cliff wrote a letter to the FA and the 19 other clubs, warning them against voting for amendments that “pose material legal risks”.

A statement from the league said: “The rule changes respond to the findings of an arbitration tribunal following a legal challenge by Manchester City against the APT system earlier this year.

“The Premier League has carried out detailed consultations with clubs – based on multiple opinions from expert independent leading advisors – to develop rule changes that address the changes to the system.

“This includes integrating shareholder loan assessment, removing some of the changes made to the APT rules earlier this year and changes to the process by which relevant information from the league's 'database' is shared with a club's advisors.

“The purpose of the APT rules is to ensure that clubs cannot benefit from commercial deals or cost reductions that are not at fair market value (FMV) based on relationships with associated parties. These rules have been introduced to provide a robust mechanism to safeguard the financial stability, integrity and competitive balance of the league.”

Manchester City have been approached for comment by Sky Sports News.

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