Premier League Chief Richard Masters has confirmed the Premier League will effect changes to the Associated Party Transaction Rules as ordered by the court.
A tribunal ruling directed the Premier League to amend the review after Manchester City challenged the provisions of the review.
Richard Masters fires warning to Manchester City, Others
Following the court’s ruling, Richard Masters has told Premier League clubs, including Manchester City that it will take time for the league to implement the ruling of the court.
Speaking in a recent interview, the 52-year-old said the ATP will be reviewed in line with court ruling but it will not be done in a hurry.
“We are committed to implement the tribunal ruling but it will not be hurriedly done,” he said.
This statement was made following Manchester City’s successful legal challenge on the Premier League associated party transaction (ATP), after the rule was found to be unlawful.
What was associated party transaction rule for?
The rule was aimed at preventing clubs from penning inflated sponsorship deals with companies linked to their owners. Manchester City challenged the rules after it had blocked them from several deals. They will also seek to claim damages from the competition.
Richard Masters added that amendment to the rules would be smooth but the body won’t hasten into making changes.
Now, according to reports, Richard Masters’ statement has reportedly led to an angered response from Manchester City, who swiftly emailed all the clubs and the league itself, accusing the Premier League of providing misleading and inaccurate information.
Simon Cliff, who is the club’s legal counsel, challenged Masters’ claim that the new rules could be passed swiftly, also warning of the prospect of further, potentially costly, legal action, if the necessary changes are made as fast as possible.
Meanwhile, Masters thanked the Premier League clubs for providing information on shareholders’ loans, an exclusion that had been identified as a key issue by a panel during the associated party transaction rules review.
How the amendment to the Associated Party Transaction Rule will be done
According to Richard Masters, the league now has a comprehensive set of information and data that will help to inform recommended approaches and rule amendment drafting.
He also claimed the League is taking their time to develop their proposals for club conditions, and that a further update would be available. He also said meetings for financial control and meetings planned with a legal advisory group might have to be rescheduled.
Although the Premier League is yet to make an official comment, some Premier League clubs are enthusiastic about the prospects of the expected amendment to the rules and have pledged their support to the Premier League.
Recall only Manchester City and Newcastle United vehemently opposed the reviewed Associated Party Transaction Rules. Several Premier League clubs voted for the review, while a few others abstained from voting.
Meanwhile, an emergency meeting has been arranged with clubs for a briefing and discussion of the way forward. The Premier League are expected to make the necessary changes as ordered by the tribunal but not ditch the entire rule as Manchester City wanted.
