On Friday, clubs in the Premier League reached an agreement to modify rules concerning financial fairness following a legal dispute initiated by Manchester City.
After conducting a vote among its 20 member clubs, the league decided that shareholder loans must now reflect fair market value. Until now, such loans could be given with little or no interest attached.
This decision is viewed as a critical step towards enabling the league to implement its Profit and Sustainability Rules, which aim to mitigate excessive spending.

In an official statement, the league emphasized that the revised rules offer a “strong mechanism to protect the financial stability, integrity, and competitive balance” of this leading global football league.
The shareholders’ vote centered on the Associated Party Transaction (APT) regulations, which guarantee fair market value in commercial agreements with entities that have close ties to club owners.
This is particularly important to avoid scenarios where sponsorship deals could be inflated to undermine the league’s financial regulations.

Manchester City, with significant backing from Abu Dhabi, had challenged these regulations after the league determined that two of its commercial agreements did not conform to fair market value.
Following a tribunal review, both City and the league proclaimed partial victories, as the tribunal validated positions on both sides.
One of City’s key arguments was that shareholder loans ought to fall under the APT regulations, which was affirmed by the ruling.
Nonetheless, City was among four clubs, alongside Newcastle, Nottingham Forest, and Aston Villa, that opposed the recent amendments, according to a source familiar with the situation who chose to remain anonymous due to the private nature of the vote.

Separately, Manchester City is contending with over 100 allegations of financial misconduct leveled against them by the league, adding another layer of complexity to these developments.