Nottingham Forest set to have say on Premier League rules change after Manchester City challenge

Nottingham Forest and their Premier League clubs are due to vote on changes to financial rules later this month, following a challenge by Manchester City.

The reigning champions had instigated an arbitration hearing over the league's associated party transaction (APT) rules, which are designed to ensure fair market value (FMV) in deals between clubs and entities linked to their owners.

The arbitration panel deemed these rules unlawful as they excluded shareholder loans. Manchester City argued that this rendered all APT rules void and accused the Premier League of "misleading" the other 19 clubs in its initial interpretation of the panel judgement.

However, instead of being scrapped, the rules are now expected to be amended at a meeting of top-flight club shareholders in central London on November 22. This comes after a period of consultation between the league and its clubs since the panel judgement was published on October 7.

It is understood that the revised rules will include shareholder loans but FMV tests will not be applied retrospectively to loans already agreed. Clubs have been asked to share details of any shareholder loans from the past three years, a period spanning before and after the introduction of the APT rules in December 2021.

An FMV assessment of shareholder loans could consider the interest rate that would be charged on such a loan in the open market, which could vary depending on each club's credit score.

Further changes to the regulations will allow clubs earlier access to a databank utilised by the Premier League in the FMV decision-making process. Additionally, alterations made to the APT rules in February will be reversed.