The legal dispute between Manchester City and the Premier League over the associated party transaction (APT) rules has concluded, with both parties claiming partial victory. The tribunal ruled that some of Manchester City’s complaints were valid, particularly regarding shareholder loans and changes made to the APT rules in February. However, City’s broader attempt to overhaul the rules was rejected, leaving both sides with mixed outcomes.
What Was Decided?
The tribunal ruled that shareholder loans should not be excluded from the APT rules and criticized the Premier League for delays in assessing City’s sponsorship values. However, crucially, the panel upheld the overall necessity of the APT rules, meaning the fundamental framework remains intact.
Both Manchester City and the Premier League can claim victories. City successfully challenged narrow elements of the rules, particularly around shareholder loans, while the Premier League retained the broader structure of its financial regulations. Legal experts see the case as a “stalemate,” with neither side emerging as a clear winner.
Impact on Rivals
The ruling could negatively impact Manchester City’s rivals, as it could make it harder for indebted clubs to comply with future rules. Loans from owners might now be subject to commercial interest rates, which could increase costs for clubs heavily reliant on such financial arrangements.
Will This Affect the 115 Charges Against City?
This case is separate from the ongoing investigation into 115 charges related to Manchester City allegedly breaching the Premier League’s financial rules between 2009 and 2018. While this tribunal’s outcome won’t directly impact those charges, City may feel encouraged by their partial success in this case.
Possible Damages Claim
Manchester City may pursue damages based on lost earnings, which could pose financial challenges for the Premier League if the club decides to claim compensation.
Both sides now face further challenges, including the potential for ongoing legal battles as clubs look to challenge the Premier League’s regulations.
