OFFICIAL: PREMIER LEAGUE WILL CONTINUE TO USE APT RULES

The Premier League appreciates the Tribunal's findings, which supported the fundamental goals, structure, and decision-making process of the APT system. The Tribunal upheld the need for the system overall, dismissing most of Manchester City's challenges. It also confirmed that the Rules are vital for the League’s financial regulations to function properly.

This ruling provides a comprehensive review of the APT Rules, which are designed to prevent clubs from benefiting through commercial deals or cost reductions that are not at Fair Market Value (FMV) due to connections with Associated Parties. These Rules were established to protect the League’s financial health, maintain integrity, and ensure competitive fairness.

However, the Tribunal identified a few specific aspects of the Rules that do not currently meet competition and public law standards (details below). The League and clubs can easily and efficiently address these areas.

In the meantime, the Premier League will continue to apply the APT system while taking the Tribunal's findings into account.

Though the arbitration process is confidential, the Premier League and the Club have agreed to release a redacted version of the decision, omitting only sensitive and confidential information.

Summary of the Decision

Competition Law

Manchester City contested the legality, design, and implementation of the APT Rules as a whole but was unsuccessful in most of its claims. Importantly, the Tribunal concluded that the APT Rules are necessary and were established with a legitimate purpose, ensuring the effectiveness of the Profitability and Sustainability Rules (PSR) and supporting the League’s sporting integrity. The Tribunal noted that without the APT Rules, it would be difficult for the PSR to function effectively, including the restatement of transactions.

The Tribunal also found that the previous system, where "related party transactions" could only be adjusted by the Premier League Board to FMV after being identified in the club’s audited accounts, was insufficient. A new system that allows the Board to assess transactions as they occur was deemed necessary.

Manchester City's arguments against the APT Rules’ framework were largely dismissed. Key findings include:

The Tribunal agreed with the Premier League that transactions not at FMV would distort competition, giving clubs unfair financial advantages.

The APT Rules contain clear criteria for determining FMV, and the process is transparent, as required by competition law.

The Tribunal rejected Manchester City's claim that the Rules discriminated against clubs with ownership from the Gulf region.

The Tribunal found in favor of Manchester City on two points:

1. Shareholder loans should not be excluded from the APT Rules, as the exclusion was a decision made by the majority of clubs, including Manchester City.

2. Certain amendments made to the APT Rules earlier in the year should not be retained, specifically the removal of the term "evidently" in FMV assessments and the shift in the burden of proof to clubs. These changes were seen as potentially leading to inaccurate assessments, or "false positives."

The Tribunal stressed that only these two areas of the Rules did not comply with competition law.

Public Law

Manchester City also argued that the APT Rules were procedurally unfair, both in structure and in relation to certain transactions. The Tribunal mostly ruled in favor of the Premier League, noting:

The APT Rules were carefully developed through negotiations with clubs.

The use of an independent expert to assess FMV ensures fairness.

Manchester City’s demand to access the Databank directly during the FMV process was rejected, as was their claim that the League’s Regulatory Team lacked independence.

The Tribunal did, however, rule in favor of Manchester City on one procedural point:

Clubs should be given access to Comparable Transaction Data during FMV assessments, rather than only at the appeal stage.

Application to Manchester City Transactions

The Tribunal also reviewed decisions related to two of Manchester City’s commercial transactions, which the Board had found not to be at FMV. Most of Manchester City’s challenges were rejected, with the Tribunal recognizing that the Premier League Board had handled the transactions appropriately and met the legal requirements.

However, it did note that Manchester City should have been given certain information earlier in the process. This has since been provided, and the club has been invited to submit further comments. While the Tribunal acknowledged some delays in assessing the transactions, it understood these were due to external factors, which have now been addressed.

Next Steps

Following the Tribunal's conclusions, the APT Rules will be updated to include Shareholder loans and revert some of the recent amendments. Beyond these changes, the Premier League’s system for evaluating APTs has been found to meet competition and public law standards, ensuring the integrity of the League’s Profitability and Sustainability Rules. A process is underway to implement the required changes promptly.

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