The verdict has been delivered in Manchester City’s legal battle with the Premier League regarding the league’s regulations on commercial agreements involving club owners.
City, owned by the Abu Dhabi-backed City Football Group, saw some of their grievances upheld, with the panel supporting Manchester City’s assertion that the revised APT rules, implemented in February this year, were unlawful due to changes in wording that restricted the interpretation of what defines ‘fair market value’ in commercial contracts.
In a detailed 175-page ruling, the tribunal determined that shareholder loans should not be exempt from the APT rules and that certain amendments introduced by the Premier League in February should be discarded.
The panel concluded that the Premier League unfairly blocked the two sponsorship deals with First Abu Dhabi Bank and Etihad Aviation Group because it failed to provide Manchester City with the necessary information in a timely manner for them to respond. Additionally, it was noted that the Premier League, which acknowledged its understaffing at the time, took an excessive amount of time—several months to arrive at its decisions in both instances.
Manchester City issued the official statement on their social media statements declaring their victory:
– The Club has succeeded with its claim: the Associated Party Transaction (APT) rules have been found to be unlawful and the Premier League’s decisions on two specific MCFC sponsorship transactions have been set aside
– The Tribunal found that both the original APT rules and the current, (amended) APT Rules violate UK competition law and violate the requirements of procedural fairness.
– The Premier League was found to have abused its dominant position.
– The Tribunal has determined both that the rules are structurally unfair and that the Premier League was specifically unfair in how it applied those rules to the Club in practice.
– The rules were found to be discriminatory in how they operate because they deliberately excluded shareholder loans.
– As well as these general findings on legality, the Tribunal has set aside specific decisions of the Premier League to restate the fair market value of two transactions entered into by the Club.
– The tribunal held that the Premier League had reached the decisions in a procedurally unfair manner.
– The Tribunal also ruled that there was an unreasonable delay in the Premier League’s fair market value assessment of two of the Club’s sponsorship transactions, and so the Premier League breached its own rules.
Man City expressed gratitude to the panel, stating that the findings indicated the Premier League had “abused its dominant position” through its approach and regulations.
🚨🔵 Manchester City statement confirm legal win over Premier League after the governing commercial deals between clubs and related companies were declared unlawful. pic.twitter.com/ThWGMequZT
— Fabrizio Romano (@FabrizioRomano) October 7, 2024
However, the Premier League stated that Manchester City was “unsuccessful in the majority of their challenge,” asserting that the tribunal found the APT rules to be essential and aimed at a legitimate objective.
“The Premier League welcomes the Tribunal’s findings, which endorsed the overall objectives, framework, and decision-making of the APT system. The Tribunal upheld the need for the APT system as a whole and rejected the majority of Manchester City’s challenges. Moreover, the Tribunal found that the Rules are necessary in order for the League’s financial controls to be effective. ”
“The decision represents an important and detailed assessment of the APT Rules, which ensure clubs are not able to benefit from commercial deals or reductions in costs that are not at Fair Market Value (FMV) by virtue of relationships with Associated Parties. These Rules were introduced to provide a robust mechanism to safeguard the financial stability, integrity, and competitive balance of the League.”
“The Tribunal did, however, identify a small number of discrete elements of the Rules which do not, in their current form, comply with competition and public law requirements (more information below). These elements can quickly and effectively be remedied by the League and clubs. “
Could Man City sue PL again?
With Man City’s potential victory against the Premier League, they could further sue the PL for the losses they had to bear due to the APT rules.
The tribunal indicated that the Premier League must reevaluate the two deals City sought to establish with Etihad Aviation Group and First Abu Dhabi Bank, which were previously blocked. Moving forward, City may consider suing the Premier League for compensation, arguing that the obstruction of these past deals has hindered the club’s ability to generate additional revenue into the club.
Read More: Hearing Begins on Manchester City Charges, What Penalties Can the Premier League Champions Face?
Mohd Faisal Hakak is a sports author from Kashmir. He likes to keep tabs on the sporting world with a keen interest in football, motorsports, NBA, and other marquee sports. He is a science graduate from Islamia College Srinagar.
