Manchester City claims victory over the Premier League after the court's verdict | first division
Manchester City have claimed victory in their legal dispute over the Premier League's associated party transactions (APT) regulations, after a tribunal found that some aspects of the rules were unlawful.
The champions said they had “succeeded” with their claim against APT rules, after a panel said the exclusion of shareholder loans from APT calculations and the process by which clubs were informed of “benchmarking” decisions were illegal.
The court also concluded that the decisions of the first division to veto two sponsorship deals must be voided due to inadequate procedures related to benchmarking.
Quick guideHow do I sign up to receive breaking sports news alerts?
Show
- Download the Guardian app from the iOS App Store on iPhone or Google Play Store on Android by searching for “The Guardian.”
- If you already have the Guardian app, make sure you have the most recent version.
- In the Guardian app, tap the Menu button at the bottom right, then go to Settings (the gear icon), then Notifications.
- Activate sports notifications.
The Premier League essentially said the verdict had been a victory for it, because it “upheld the need for the APT system as a whole and rejected the majority of Manchester City's challenges.” The league said it planned to “quickly and effectively” adjust its rules in talks with its shareholder clubs.
This verdict ends a process that began this year after the league revised its rules on APTs. It has no direct connection with the legal process in which the league accused City of 130 violations of its regulations. The city has denied wrongdoing and attorneys began hearing the case on Sept. 16, with a verdict expected in the new year.
APTs, in which clubs strike sponsorship or revenue deals with companies linked to their owners, have been under scrutiny by the league for some time. in february The clubs voted to approve stricter rules on how such deals are valued. The city challenged the requirement to assess the fair market value of APTs, arguing that it contravenes competition law.
City are understood to have requested financial compensation from the league for losses perceived from sponsorship deals that were stopped by the rules. They argue that the league has failed to demonstrate that clubs gain an unfair advantage from APTs and has previously failed to act with the same urgency to rein in the big spending of dominant teams.
The takeover of Newcastle United by Saudi Arabia's sovereign wealth fund in 2021 had previously sparked hasty attempts by clubs to change the APT rules.
City also allege that the rules were designed to hinder Gulf state owners and members of multi-club ownership groups (something that applies to City in both cases) and were only put in place due to rivals' desire to “safeguard its own commercial advantages.”
