Man City flaws premier league in legal battle
Manchester City has won a legal battle against the Premier League over its Associated Party Transactions (APT) rules.
A tribunal ruled the original APT rules from 2021 to 2024 were unenforceable, adding to existing uncertainty around financial regulations in the league.
The decision follows a previous ruling from back in November, where an independent arbitration panel found aspects of the rules unlawful, leading the tribunal to conclude the entire framework was void.
This could result in clubs seeking compensation for previously rejected sponsorship deals.
APT rules were formed by the Premier League to prevent clubs from profiting from commercial deals with companies linked to their owners that are deemed above ‘fair market value’.
Revised APT rules will remain in place, but City will also challenge these, raising concerns about the Premier League’s ability to regulate club finances effectively, especially with ongoing scrutiny over Manchester City’s 130 alleged financial breaches and the potential for an independent football regulator.
Despite the ruling, the Premier League maintains confidence in its new regulations. A Premier League spokesperson said, “This decision expressly does not impact the valid operation of the new rules.
“The tribunal has made no findings as to the validity and effectiveness of the new rules. The tribunal states that whether its decision has any benefit to the club, therefore, depends on whether the new APT rules are found to be lawful as part of the second challenge issued by the club last month.
“The league continues to believe that the new APT Rules are valid and enforceable and is pressing for an expeditious resolution of this matter.
“The new APT rules are in full force and clubs remain required to comply with all aspects of the system, including to submit shareholder loans to the Premier League for fair market value assessment.”
