Premier League to address flaws in APT rules following tribunal’s decision
Following the publication of the decision of an Arbitration Panel, which was the result of a legal challenge brought by Manchester City against the Associated Party Transaction (APT) Rules of the Premier League, the Premier League has issued a statement.The decision made by the tribunal provides a comprehensive analysis of the APT framework, addressing both the positive aspects of the system as well as its negative side effects.
In its response, the Premier League issued a statement on Monday via its website, highlighting the fact that the findings of the tribunal largely supported its approach. The statement also stated that the decision "endorsed the overall objectives, framework, and decision-making of the APT system."
Within the league, the League emphasized that the tribunal acknowledged the importance of the APT Rules in preserving the league's financial stability, integrity, and competitive equilibrium.
According to the statement, "The Tribunal came to the conclusion that the APT Rules are essential, that they pursued a legitimate objective, and that they were implemented in order to guarantee that the Profitability and Sustainability Rules (PSR) are being implemented effectively."
According to the statement, Manchester City's challenge, which questioned the legality of the APT Rules as well as their design and implementation, was largely unsuccessful.
As a result of the tribunal's conclusion that "it is difficult to see how the PSR can be effective without the APT Rules, including the ability to restate transactions," the current requirement for such regulations to control Associated Party Transactions was validated.
However, the ruling also identified specific areas in which the APT Rules of the Premier League did not comply with the requirements of competition law and public law.
In particular, the tribunal emphasized that "shareholder loans should not be excluded from the scope of the APT Rules," which was a provision that had previously been supported by the majority of the clubs in the league, including Manchester City.
In addition, the tribunal came to the conclusion that certain modifications that were implemented earlier this year, such as modifications to the definition of Fair Market Value (FMV) and the burden of proof that was required, could result in "false positives" in evaluations.
It was stated by the tribunal that these aspects "can be remedied by the League and clubs in a quick and effective manner."
Additionally, the Premier League expressed its appreciation for the tribunal's support regarding the procedural fairness of the APT system, which included the utilization of an independent assessor for FMV evaluations.
It was brought to everyone's attention that the tribunal did not agree with Manchester City's assertions that the rule was applied in a biased and inconsistent manner. In spite of this, the tribunal suggested that "Comparable Transaction Data relied upon by the Board" should be made available to clubs earlier on in the evaluation process in order to improve transparency.
The majority of Manchester City's challenges were rejected by the tribunal in regard to the application of APT Rules to particular transactions involving the club.
It was determined that the FMV assessments of two Manchester City transactions made by the Premier League Board were "not unreasonable," but it was suggested that certain procedural aspects, such as the timing of data sharing, could have been improved.
Moving forward, the Premier League stated that it would incorporate the recommendations made by the tribunal, particularly those concerning the incorporation of shareholder loans into APT evaluations and the modifications to rule amendments that were introduced earlier in the year.
In spite of these modifications, the Premier League has maintained that its rulebook continues to be "an effective and necessary system for assessing the FMV of APTs in order to ensure the integrity of the League's Profitability and Sustainability Rules."
Despite the fact that the arbitration process is kept confidential, both parties have reached an agreement to publish a version of the decision made by the tribunal that has been redacted, with the exception of information that is commercially sensitive.
The Premier League came to the conclusion that it would continue to use the advanced player tracking system that is currently in place while simultaneously collaborating with clubs to swiftly implement the necessary adjustments.
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