NEW PREMIER LEAGUE RULES FACE OPPOSITION

Premier League football clubs will now face sanctions if they are found to have inflated deals with ‘associated parties’, after an amendment to rules was approved.

Last month, the league’s teams voted to toughen rules on associated party transactions, which can include deals with another football team within a multi-club group or with a company that has the same ownership group as the club.

Now, the Premier League’s handbook has been updated to reflect the new guidance, which includes the possible penalties clubs can face.

Previously, if a Premier League club was found to have embellished the value of a deal with an associated party, the league would be able to block the agreement or state the fair market value.

As per the new rules, the Premier League will now be able to penalise clubs with a penalty ‘left to the discretion of an independent commission.’

The burden of proof with regards to whether an associated party transaction is fair market value also now falls with the clubs in the updated guidance, with the Premier League board ultimately determining whether such a deal has been correctly reported to the league by the clubs.

Following the rule changes, the league is facing legal challenge from one of its own clubs, thought to be Manchester City. The treble winners, that are currently subject to 115 charges from the Premier League for breaking the profit and sustainability rules, believe that the rules may be in contravention of competition law.

In 2021, regulations were introduced which stated that club sponsorship deals worth more than £1m would have to be submitted to the Premier League to check it is not an ‘associated party’ transaction. These were agreed by the clubs, despite opposition from Newcastle United and Manchester City.

Now, Manchester City looks set to oppose the latest rule changes once again.

A Premier League statement read, ‘Following a full review of the existing associated party transactions rules and fair market value assessment protocols, clubs agreed to a series of amendments to further enhance the efficiency and accuracy of the system.’