Manchester City has secured a legal victory against the Premier League in a dispute concerning financial regulations. An independent panel ruled that Associated Party Transaction (APT) rules are void and unenforceable. While both sides interpret the ruling differently, the Premier League maintains that new APT rules, adopted in November 2024, supersede the previous ones. City, however, challenges the legality of these new rules, arguing they were implemented based on the now-invalidated APT rules. This legal victory comes ahead of a verdict on more than 100 alleged breaches of financial rules by City dating back to 2009.
Manchester City has achieved a legal victory against the Premier League in an ongoing dispute concerning financial regulations, but both parties have contrasting interpretations of the ruling's significance. According to Sky News, an independent panel informed clubs that Associated Party Transaction (APT) rules are deemed void and unenforceable.
These rules, introduced in December 2021 following the Saudi takeover of Newcastle, aimed to ensure commercial agreements with entities linked to club ownership were conducted at fair market value. They also targeted the revenue Manchester City, backed by Abu Dhabi, could generate from state entities through sponsorships. City initiated legal action after the Premier League blocked the club from advancing new, more lucrative deals with Etihad Airways and First Abu Dhabi Bank. The Premier League champions are owned by UAE vice president Sheikh Mansour. This recent arbitration panel ruling criticized the Premier League's authority as a regulator to establish rules. It follows an initial verdict in October. The league responded to that by revising three aspects of the rules found to be illegal, and these revisions were approved by a majority of clubs in November. Notably, the fair market value of shareholder loans now plays a role in assessments regarding the profitability and sustainability of clubs, which determine legitimate income. The league also ensured clubs would have earlier access to a database featuring comparable sponsorship values to evaluate their deals. Consequently, Premier League chief executive Richard Masters believes those new rules replaced the ones now declared void by the tribunal, attempting to minimize the impact of this ruling.
Manchester City Premier League Financial Rules APT Rules Legal Battle
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