Man City APT round-up: Premier League accused of 'misleading' clubs, emergency meeting planned
There is plenty going on behind the scenes at Manchester City at the moment.
Manchester City and the Premier League both claimed victory in the case involving rules regarding associated party transactions (APT) earlier this week but it continues to dominate headlines.
City brought a landmark legal case against the Premier League during the summer in which it alleged that the league’s decision-makers were unfairly implementing the APT rules. Those laws are designed to ensure clubs can not inflate sponsorships from associated parties - such as City and their chief commercial partner Etihad Airways, both of which have ties to Abu Dhabi.
APT rules ensure that fees paid as part of a commercial deal match a fair market value (FMV). Without this system, clubs could inflate those figures allowing them to subsequently navigate the Premier League’s Profit and Sustainability Rules (PSR).
On Monday, City and the Premier League both claimed victories in the Rule X Arbitral Tribunal Award, relating to how APT rules have been applied. They were introduced back in 2021 after Newcastle United’s Saudi-led takeover. Abu Dhabi-backed City Football Group continue to fund operations at the Etihad Stadium. Here is a round-up of the latest news...
Premier League accused of misleading clubs
City have accused the Premier League of ‘misleading’ clubs over APT rules. They have written to all other 19 teams in the top flight.
General counsel, Simon Cliff has written in a letter: “Regrettably, the summary is misleading and contains several inaccuracies. While it is true that MCFC did not succeed with every point that it ran in its legal challenge, the club did not need to prove that the APT rules are unlawful for lots of different reasons. It is enough that they are unlawful for one reason. In the event, the tribunal found the APT rules are unlawful for three different sets of reasons.
“Given the findings in the award, this is the time for careful reflection and consideration by all clubs, and not for a kneejerk reaction. Such an unwise course would be likely to lead to further legal proceedings with further legal costs. It is critical for member clubs to feel that they can have trust in their regulator.
“When the Premier League consulted on and proposed the original APT Rules in late 2021, we pointed out that the process (which took several weeks) was rushed, ill-thought-out and would result in rules that were anti-competitive. The recent award has validated those concerns entirely. The tribunal has declared the APT rules to be unlawful. MCFC’s position is that this means that all of the APT rules are void, and have been since 2021.”
City accused of bullying tactics
As per The Times, City have been accused of using ‘bullying’ tactics with the publication of their letter by an unnamed Premier League chief. The report reads: “This latest legal threat is just bullying behaviour by @ManCity and there is a feeling now that the other clubs need to stand up to them. The tribunal has found that the Associated Party Transaction system works but that it needs some changes. If City are determined to have another costly legal battle then it could well backfire.”
Chief pulls out of golf event
Premier League chief Richard Masters has pulled out of a high-end golf event in Scotland ahead of a meeting regarding City’s legal battle, the Daily Mail report. He will now direct his attention to the ongoing case after his late call not to attend.
Emergency meeting
Premier League clubs will now hold an ‘emergency’ meeting to discuss City’s judgement against the APT regulations, Sky Sports claim. The other 19 teams will have negotiations about what direction they want to go in next.
Tribunal panel update
In this update from journalist Martyn Ziegler on X, he posted: “UPDATE on Man City case: tribunal panel have been asked by club and PL to deliver further explanation on their ruling which will be critical to the future of associated party rules and the huge new Etihad deal.”
At the heart of City’s complaint were two commercial transactions that were rejected by the Premier League. But the tribunal ruled the league’s verdict was ‘not unreasonable’ and City have been invited to resubmit these sponsorship applications. This case is separate from the 115 charges that have been brought against City from the Premier League. That case is currently in its third of a 10-weeks hearing.