"City's challenge was understood to have included criticism of the way the Premier League treated shareholder loans under the rules. The league and City have agreed to make no further comment on the matter. The APT rules were originally introduced in December 2021, following the Saudi-led takeover of Newcastle earlier that year. Those rules were successfully challenged by City last year, with a tribunal finding them unlawful on multiple grounds, including the fact they excluded shareholder loans from fair market value assessments."
"Without APT rules, entities linked to clubs' owners could potentially overvalue sponsorships and other commercial transactions to boost a club's revenue, putting that club in a stronger position under the league's profitability and sustainability rules (PSR) and therefore given more leeway to spend on transfer fees and player wages. An assessment of shareholder loans for fair market value was incorporated into the APT rules last November, but the rules do not apply retrospectively."
Manchester City and the Premier League settled a dispute over rules governing associated party transactions, with City accepting the current rules as valid and binding. City launched arbitration on January 20 challenging the rules and their treatment of shareholder loans. The APT rules were introduced in December 2021 after Newcastle's Saudi-led takeover and were previously found unlawful in a tribunal that criticized the exclusion of shareholder loans from fair market value assessments. The Premier League consulted clubs and revised the rules, with 16 clubs approving amendments last November. An assessment of shareholder loans for fair market value was added but not applied retrospectively. The league and City agreed to make no further comment.
Read at Fox Sports
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