While celebrating the renewal of Pep Guardiola and awaiting sentencing for the case of the 115 irregularities in ‘financial fair play’, Manchester City received a serious blow this Friday from the Premier League, as the majority of its clubs have voted modify the sponsorship rules against his position, which called for delaying any changes. Manchester City had challenged the league’s associated party transaction (APT) rules, whose purpose is to evaluate whether agreements between clubs and entities linked to their ownership are adjust a real market value, with the aim of maintaining the competitiveness of the Premier by preventing clubs from inflating the value of sponsorship agreements with companies linked to their owners. This means that from now on it will be more difficult for any club to pass off as a sponsorship agreement a hidden financial injection from its owners. An arbitration tribunal had deemed some aspects of the previous APT rules illegal, leading to a disagreement between City and other teams with the Premier League over the next steps to take. Along with the Manchester team, Aston Villa, whose owner Nassef Sawiris considered it vital to achieve unanimity among all clubs on the rules, Newcastle and Nottingham Forest, had positioned themselves in favor of a postponement. However, they were defeated in a vote that yielded a result of 16-4, more than enough when what was required was a two-thirds majority (14 clubs). Related News Standard football Yes Who are the Arnaults, the family that threatens the hegemony of the PSG in Paris Miguel ZarzaThe Premier League has explained that City “was not successful in the majority of challenges” and that the court that considered the case had determined that the APT rules were necessary and pursued an objective legitimate. “The amendments to the rules address the conclusions of an arbitration tribunal following a legal challenge by Manchester City to the APT system earlier this year,” the English league explained in a statement. “The Premier League has carried out detailed consultation with clubs, informed by multiple opinions from expert and independent advisors, to draft rule changes that address the modifications required to the system.” “The aim of the APT rules is to ensure “that clubs cannot benefit from commercial agreements or cost reductions that do not conform to a fair market value by virtue of the relationships with associated parties,” he details. That said, avoid injections of money disguised as sponsorships. “These rules were introduced to provide a solid mechanism to safeguard the financial stability, integrity and competitive balance of the league,” he adds. Greater financial control From the implementation of these new rules, Any income will have to be presented as an associated party transaction (APT), so it will be subject to an evaluation to see if its value is truly in line with the market. And if the Premier finds that it is not, the club will be forced to cancel or modify it and pay any deficit in interest. Since Sheikh Mansour bin Zayed Al Nahyan, vice president of the United Arab Emirates (UAE), took control from Manchester City in 2008, the club has grown exponentially to become the dominator of English football and a regular candidate for European trophies. However, since the beginning of this relationship, other English and continental football clubs have questioned the veracity and legitimacy of the main sponsorship contracts of companies with links to Abu Dhabi, the capital of the UAE.
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