S Poddar
Premier League clubs have voted to tighten their grip on commercial deals, despite a quartet of clubs voting against the proposals.
At the recent meeting of the Premier League in London, 16 of the 20 clubs present voted in favor of changes in the Associated Party Transaction rules. These new amendments are set to ban clubs from earning questionable gains from commercial or sponsorship deals with firms which are linked to their owners.
The move comes after an independent panel, in March this year, ruled that certain aspects of the Premier League’s original APT rules were unlawful. The new rules aim to solve these issues and make it stronger in terms of regulation on such deals.
While most of the clubs voted in favor of the amendments, Manchester City, Newcastle United, Nottingham Forest, and Aston Villa voted against them. These clubs, especially City and Newcastle, have been criticized for their financial dealings and source of funding.
Tightening up the rules is perceived as a significant move by the Premier League toward maintaining competitive balance and financial fairness within the league. In doing so, the league aims at preventing clubs from gaining unfair advantage through artificially inflated sponsorship deals to establish fair market value for commercial deals.
However, the decision has also deepened the division among Premier League clubs. Four clubs have come out to express dissent over the new rules they believe are illegal and may have far-reaching effects. Some have thought that the rules will unfairly target clubs and possibly lead to other legal challenges that will be raised.
As the Premier League resolves to push forward with its rule changes, despite all opposition, one can only perceive the growing tension and power struggle within the league. That the Premier League is starting to come to terms with financial fair play and club ownership, whether the new rules of APT will be effective in maintaining a level playing field remains to be seen.
