Manchester City have emerged victorious in their legal battle with the Premier League, as rules governing commercial deals are declared unlawful.
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Champions contested APT rulesDeemed to have been unlawfulMay impact a number of top clubsWHAT HAPPENED?
Said ruling could have huge ramifications for the English top-flight, with City considered to have been unfairly blocked from agreeing lucrative sponsorship deals with club-associated companies. The reigning Premier League champions were prevented by Associated Party Transaction (APT) rules from putting agreements in place with Etihad – their stadium and shirt sponsor – the First Abu Dhabi Bank (FAB) and Emirates Palace.
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City are now in a position to seek compensation as the Premier League is considered to have abused its position. Other clubs may take a similar stance. The rules in question are considered to have been unlawful as they did not take into consideration interest-free loans that shareholders lend to clubs – with the likes of Arsenal said to have £200 million of equity made up entirely of loans from their ownership team. City were trying to generate funds by other means.
DID YOU KNOW?
The APT rules were introduced back in December 2021, following the Saudi-led takeover of Newcastle United. They were designed to maintain competitiveness in the Premier League as teams were prevented from inflating commercial deals struck with companies linked to their owners – with transactions independently assessed in order to determine “fair market value”.
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Arsenal, Manchester United, Liverpool, West Ham United, Brentford, Bournemouth, Fulham, and Wolverhampton Wanderers all supported the Premier League’s stance, but have seen City prevail in a legal wrangle. The Premier League has also been found to have breached its own rules by taking an “unreasonably long time” to reach decisions relating to the FAB and Emirates Palace deals that City were eager to put in place. City accused those running English football’s top tier of “discrimination” as a “tyranny of the majority” attempted to stifle their on-field success.
