An emergency meeting has been pencilled in by the Premier League.
(Image: Michael Regan/Getty Images)

Man City hearing outcome prompts emergency meeting as Premier League clubs to vote

by · Manchester Evening News

An emergency meeting has been planned by the Premier League for its member clubs to vote on the proposed amendments to its sponsorship rules.

In the form of a detailed 14-page document, the proposals, which focuses on the outcome of Manchester City's legal challenge to rules on associated party transactions (APTs), have been received by clubs.

As per reports from The Times, Premier League clubs will meet on Friday, November 22. The meeting is set to be held at the Nobu Hotel in Portman Square, London.

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Although the division's officials are hoping the sit-down can bring some sort of relief, it has escalated into a 'civil war' between rival clubs and it remains to be seen if these proposals will be passed. City and the Premier League both claimed victory - of sorts - after their APTs court case was brought to an end last month with City getting a justification when it came to their challenge.

As well as the treatment of shareholder loans, the proposed amendments include a reversal to some of the new rules implemented this year and club's access to relevant data.

City had challenged the rules and regulations, around APTs, that exist in the Premier League at present. City had seen big-money commercial deals with Etihad and Abu Dhabi First Bank rejected due to them being deemed not to be at a fair market value.

In October, though, an independent tribunal found that certain elements of the rules were "unlawful". They cited the exclusion of shareholder loans, interest-free loans from companies or individuals that have more than a 5 per cent stake in the club as a key problem that needed to be fixed.

Speaking to The Athletic, Simon Leaf, a partner and head of sport at law firm Mischon de Reya, said last month: "While the Premier League may try to carry on with the existing rules and rely on the 'blue pencil test', where essentially they would argue that the rules should be read so that they are automatically reinterpreted in a lawful way, it would appear that City would challenge this strongly.

"They would no doubt try to argue that until formal changes to the rules are voted on and agreed by the other clubs, including changes to address the shareholder loans point, the APT rules cannot be enforced.

"Manchester City may even try to suggest that APT rules can only now work if the shareholder loan calculation applies retrospectively which, again, is likely to be problematic for the league because several clubs are likely to oppose this, and may even try to challenge such a change themselves. In short, it's a mess."