E
Ernest Victor
Guest
The legal case between Manchester City and the Premier League regarding the associated party transaction (APT) rules has concluded with both parties claiming victories.
The tribunal upheld some of Manchester City’s complaints, deeming two aspects of the APT rules unlawful. However, the majority of the City’s challenges were rejected, and the tribunal endorsed the overall objectives and framework of the APT system.
The APT rules are aimed at regulating the value of sponsorship deals between clubs and companies linked to their owners. This case is separate from the Premier League disciplinary commission, which will address multiple charges against City for alleged breaches of financial regulations.
The tribunal ruled that shareholder loans should not be excluded from the scope of the APT rules and that some amendments made by the Premier League in February 2024 should not be retained.
Chelsea, Newcastle, and Everton acted as witnesses for Manchester City, while Manchester United, Liverpool, Arsenal, Tottenham, Brighton, and West Ham supported the Premier League in the suit.
The APT rules were introduced in December 2021, following a vote that was not unanimous. Subsequent changes involved amendments to the definition of fair market value and shifting the burden of proof to clubs to demonstrate that transactions are at fair market value.
Moving forward, the Premier League has stated its intention to address the tribunal’s rulings by integrating the assessment of shareholder loans and removing some of the February amendments. The EPL aims to conduct this process effectively to enact specific changes swiftly.
Both the Premier League and Manchester City have expressed their satisfaction with the tribunal’s findings and remain focused on their respective positions.
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