Manchester City have launched a new legal challenge against the Premier League’s new sponsorship rules, reigniting a complex legal battle that already involves multiple cases. The Premier League champions have engaged their legal team to reach out to Premier League officials with the aim of initiating another arbitration hearing focused specifically on the Associated Party Transaction (APT) rules.
Currently, there are three active legal disputes between Manchester City and the Premier League. One case encompasses over 100 charges against City related to alleged violations of the league’s financial regulations, which the club has consistently denied. Another ongoing challenge pertains to the initial APT rules, and now this new legal pursuit has surfaced, suggesting that Manchester City is deeply committed to contesting these regulations.
The APT rules, introduced to regulate commercial transactions between clubs and businesses associated with their owners, are designed to ensure that such deals reflect “fair market value.” These regulations have generated significant controversy as they aim to prevent wealthier clubs from artificially inflating financial agreements. The purpose behind these stricter rules is to maintain competitive balance within the Premier League, preventing any one club from monopolizing talent through financial power.
Reports indicate that Manchester City is dissatisfied with these modifications to the APT rules, perceiving them as measures that ultimately serve to restrict competition. The club’s discontent was evident when the amendments were approved by a majority of other Premier League clubs, defeating Cityβs efforts to block these changes. The club has described the changes as part of a “tyranny of the majority,” underscoring their belief that the regulations disproportionately impact them.
Back in November, the Premier League’s changes to the APT rules were influenced by a legal challenge initiated by Manchester City the previous June. Following a thorough review, an arbitration panel found some aspects of the league’s APT rules to be unlawful, leading to adjustments being put on the table. In response, the Premier League organized a vote among its member clubs to endorse amendments they believed would align the rules with UK competition law requirements.
The details of the amendments included integrating shareholder loans into the fair market value (FMV) assessments, as well as eliminating certain changes previously made to the APT rules. Additionally, adjustments were made concerning how clubs can access the league’s databank, which plays a crucial role in FMV decision-making.
Despite Manchester City’s vote against the amendments, the Premier League achieved the necessary majority, with at least 14 clubs supporting the changes. Alongside City, clubs such as Aston Villa, Newcastle, and Nottingham Forest also expressed dissent. Premier League chief executive Richard Masters communicated these developments in a letter sent to all member clubs, emphasizing the league’s position on the legality of the amendments.
In his correspondence, Masters reaffirmed the Premier League’s stance, asserting that the revised APT rules fully comply with all required competition laws. He highlighted the importance of expediting the resolution of Manchester City’s latest arbitration request, advocating for the same tribunal that handled previous cases to oversee this new challenge. Furthermore, he reiterated that the APT regulations remain in full force, obligating all clubs to adhere to these established guidelines.
“The Premier League remains strongly of the view that the amendments passed in November were lawful and the APT rules comply with all competition law requirements. We consider that the new arbitration must be resolved as soon as possible and, to that end, have agreed that the same tribunal should be appointed to hear the new case.
“The parties are currently corresponding in relation to further directions. He added, “The APT rules remain in full force and effect and clubs remain required to comply with all aspects of the system.”
As this legal situation unfolds, it comes at a critical time, with clubs gearing up for their first shareholder meeting of 2025 in London next Thursday. The outcomes of these ongoing disputes could have significant ramifications for the financial landscape of the Premier League and the competitive balance among its clubs.
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