PL clubs rebel against City & agree new financial rules in huge win for Masters

PREMIER LEAGUE clubs have voted in favor of new financial rules – a huge victory for embattled chief executive Richard Masters.

Manchester City had led the charge against the changes to the Associated Party Transaction rules.

City had warned the other 19 top clubs that the changes – backed by an independent QC – remained illegal.

But at this morning's shareholder club meeting in a central London hotel, the measures were passed by 16 votes to four.

League bosses have put the issue at the top of the agenda as a sign of their confidence.

And in a surprise twist, Chelsea, who were thought to be in City's corner, backed Masters and – alongside Manchester United – spoke out in support of the “need for rules”.

It is understood that Aston Villa, Newcastle and Nottingham Forest joined City in voting “no”.

But the scale of support for the Prem board, which significantly exceeded expectations, is a huge win for Masters.

The league's chiefs submitted the new rules after an arbitration tribunal made up of three former judges found aspects of the rules, which were introduced in February despite fierce opposition led by City, as 'unlawful'.

Senior commercial expert Daniel Jowell KC advised that the revised rules complied with the arbitration panel's requirements and commercial law.

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In a statement, a Prem spokesperson said: “At a Premier League shareholders meeting today, the clubs approved changes to the League's Associated Party Transaction (APT) rules.

“The changes to the rules 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 Counsel – to develop rule changes that address the changes to the system.

“This includes the integration of shareholder loan assessment, the removal of 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 the advisors of a club.”

The spokesperson added: “The purpose of the APT rules is to ensure that clubs cannot benefit from non-Fair Market Value (FMV) commercial deals or cost reductions based on relationships with associated parties.

“These rules have been introduced to provide a robust mechanism to ensure the financial stability, integrity and competitive balance of the League.”