Newcastle United & Man City 'summoned' to Premier League meeting in fresh APT rules twist

As per Mail Sport, all 20 top-flights club have been summoned to Central London on November 22. A 14-page document outlining proposed changes has been sent to clubs ahead of what “promises to be a potentially volatile meeting” at the Nobu Hotel in Portman Square.

Mike Keegan writes: “The inclusion of shareholder loans – monies lent to clubs from those with stakes in them – is one of three changes being proposed across the 14 pages. 

“Instead, that exclusion has now been removed, although equity injection investments remain exempt. The other two focus on access to a databank of commercial deals used by the Premier League to reach a verdict on whether a proposed sponsorship is at fair market value (FMV) and the reversal of a number of changes brought in earlier this year.”

“The definition of FMV has been changed from whether the amount ‘could’ be sold rather than ‘would’ be sold between willing parties. The words ‘in normal market conditions’ have been removed, along with three lengthy paragraphs outlining its definition by the Premier League. There is an argument that in exceptional circumstances companies linked to countries in the midst of huge drives for exposure, such as Saudi Arabia, would be willing to pay a premium.”

Seven clubs would need to vote against the proposals to stop them from going through. How clubs, including, Newcastle responds remains to be seen, although one issue the Premier League may face is a backlash from clubs who benefit from shareholder loans.

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This comes after Manchester City claimed a win against the Premier League in their recent arbitration case. In a club statement, Man City wrote: “APT rules have been found to be unlawful” and that they “violate UK competition law and violate the requirements of procedural fairness.”

APT rules were introduced in the wake of Newcastle’s £305million takeover by the Public Investment Fund of Saudi Arabia three years ago. In the document released from Man City’s arbitration case, it revealed a Premier League executive - whose name has been redacted - emailed the league on behalf of his club and 10 others just five days after the PIF buy-out was finalised.

Premier League clubs were initially placed under a temporary ban from agreeing commercial deals with companies linked to their owners before the ban was lifted and replaced by the process that is still in place today, with every related-party deal independently assessed to represent ‘fair market value’.

Therefore, that immediately restricted Newcastle’s ability to land lucrative deals with companies linked to PIF. The front-of-shirt sponsorship with Sela, understood to be worth around £25million per-season, was subject to a ‘fair market value’ check.