Premier League face legal action & rebellion from clubs after controversial vote
The Premier League is facing a major rebellion over ownership rule changes.
Manchester City are believed to be the club who are threatening to make a legal challenge in the face of the league tightening up rules on Fair Market Value sponsorship deals. And although there is Premier League optimism, a financial deal with the EFL seems as far away as ever, despite talks between top flight and EFL clubs this week, largely made up of Championship teams.
The new tightened up Associated Party Transactions Rules and Fair Market Value proposals were passed at a shareholders’ meeting in London, with it going through on the tightest possible margin after 12 clubs voted in favour, two abstained and six against.
It went through because that equates to two thirds of the 18 clubs who voted, but the issue has still proved to be highly contentious and divisive. They are being tightened up to ensure no club can over inflate sponsorship or commercial deals tied to in-house companies.
The Fair Market rules were introduced in 2021 but the 20 clubs were told on Friday that one of its members could resort to arbitration proceedings to prevent new changes. It is another challenge for Premier League chief executive Richard Masters, who is also under pressure to find a financial deal with the EFL rather than have one imposed by an independent regulator under the forthcoming Football Governance Bill.
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The Premier League described discussions over dinner on Wednesday night as “productive” between top flight and EFL clubs and promised to step up negotiations but there is still a feeling that any agreement is unlikely. They had lengthy discussions with clubs and senior EFL figures but a compromise seems far away, especially as the Premier League cannot pass new-look and restructured Profit and Sustainability Rules until the summer.
Effectively, Premier League clubs do not know how much money they have got to play with, let alone reach a new financial agreement with the EFL.
Manchester City are sponsored by Etihad Airways (Daniel Chesterton/Getty Images)Meanwhile, Masters has written to the Culture, Media and Sport Committee and denied any suggestion of "moving the goalposts" over Everton's 10-point deduction as he stressed the Premier League was asked for their view on punishment by a recommendation by the Independent Commission because there is no set tariff.
Masters wrote: "As stated above, the Premier League was expected to provide a view as to what it considered to be the appropriate sanction in this case, in order to assist the independent Commission."
Masters also sought to explain himself after angering Everton and Nottingham Forest fans by appearing to refer to them as “small clubs” last month. He explained: “I was asked a question by a committee member who used the term ‘big clubs’ when arguing that there is cynicism about certain clubs' ability to use legal means to ensure that cases ‘take 10 years or never come to fruition’.”
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