The Premier League is poised to hold a significant vote on Friday regarding associated party transaction (APT) rules, which could have major implications for Manchester City. These rules were initially implemented following the Saudi Arabia Public Investment Fund’s takeover of Newcastle United. They aim to prevent clubs from artificially inflating commercial deals with companies linked to their ownership groups.
Manchester City, owned by the Abu Dhabi United Group, has legally challenged these regulations, arguing that they unfairly target their operations. The club claims the rules discriminate against them and restrict economic competition by limiting commercial freedoms. This legal challenge, filed in June, arose after the Premier League rejected a sponsorship extension with Etihad that was deemed to not reflect fair market value.
For the proposed changes to pass, at least 14 out of the 20 Premier League clubs must vote in favor. There is increasing confidence that the league will secure this support, as Wolves and Everton, who previously opposed stricter APT regulations, are now reportedly backing the Premier League’s stance. This shift makes it more difficult for Manchester City to rally the seven votes needed to block the changes.
Clubs such as Aston Villa, Newcastle United, Nottingham Forest, Chelsea, and Leicester City are expected to align with Manchester City, but even with their support, the opposition would fall one vote short of the threshold required to veto the proposal.
This upcoming vote is distinct from the broader investigation into Manchester City’s alleged breaches of Premier League rules. The outcome of that separate probe, involving 115 charges, is expected before the end of the current season. Meanwhile, City argues that the APT rules reflect a “tyranny of the majority,” specifically designed to curtail certain clubs’ financial dealings in specific situations.