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Manchester City win legal battle with Premier League
Manchester City have won their legal battle with the Premier League, as an independent tribunal rules that the league’s financial regulations were “unlawful, void, and unenforceable.”
The ruling, separate from City’s ongoing case involving 130 alleged financial breaches, specifically invalidates the Associated Party Transactions (APT) rules, which governed sponsorship deals linked to club owners from December 2021 to November 2024.
This verdict could have major implications for the Premier League authorities, potentially opening the door for compensation claims from clubs like City and Newcastle, who were restricted by the rules.
City had challenged the Premier League after proposed deals with Etihad Airways and First Abu Dhabi Bank were blocked in 2023.
The tribunal’s decision also means the Premier League must cover £20 million in legal costs.
Despite this setback, the league insists that its new financial regulations, implemented after a vote in November, remain valid.
Manchester City has achieved a significant legal victory over the Premier League concerning sponsorship regulations. An independent tribunal has declared the league’s Associated Party Transaction (APT) rules, which were in effect from December 2021 to November 2024, as “void and unenforceable.”
The APT rules were designed to prevent clubs from securing inflated commercial deals with entities linked to their ownership, aiming to maintain competitive balance within the league. However, the tribunal found that these regulations unfairly exempted shareholder loans from fair market value assessments, leading to their invalidation.
This ruling may have far-reaching implications, potentially allowing clubs whose sponsorship deals were previously blocked under these rules to seek compensation. The Premier League has since introduced revised APT regulations as of November 2024, but their legality is currently under scrutiny in an ongoing challenge.
It’s important to note that this legal battle is separate from the 130 disciplinary charges Manchester City faces related to alleged financial rule breaches between 2009 and 2018, which are still under review.
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