February 17 – Defending champions Manchester City may be finding it tough on the field to maintain their dominance but off it they have scored a significant win over the Premier League.
Last Friday an independent tribunal deemed that sponsorship rules in place in the league for nearly three years were “void and unenforceable” in a massive blow to the league.
The ruling follows a previous verdict by the tribunal which found three aspects of the so-called Associated Party Transaction rules which ran between December 2021 and November 2024 to be unlawful. Both parties at the time claimed victory.
The latest decision follows a legal challenge by Manchester City against the APT rules, which regulate commercial deals between clubs and companies linked to their owners if considered above fair market value.
The result means all Associated Party Transactions (APT) between 2021 and 2024 can now be disputed, raising huge fears that other clubs in England’s top flight will seek compensation for any deals that were blocked or reduced in value during that time. The Premier League must foot a legal bill which could run into the tens of millions of pounds.
“The three respects in which the APT rules and amended APT rules were unlawful cannot be severed with the result that the APT rules as a whole are void and unenforceable,” the tribunal judged.
The aim of the APT rules – which were devised in December 2021 following the Saudi-led, Public Investment Fund (PIF) takeover of Newcastle – were for the Premier League to regulate against its clubs using sponsorship deals with companies linked to their owners in order to inflate revenue streams and allow room for greater spending.
City argued the rules – designed to prevent the wealthiest clubs from inflating the value of deals to spend more on players – were unlawful and against competition law.
Crucially, however, the case is separate from more than 100 charges laid against City for allegedly breaching financial regulations with an eagerly awaited verdict expected in the coming weeks.
If City are found guilty, severe punishments could be handed down, with the prospect of a heavy fine, transfer embargo or crippling points deduction.
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