Manchester City have scored a major victory in their legal challenge against the Premier League over Associated Party Transaction rules.
City took the Premier League to court to challenge the APT rules which they deemed as unfair after they were introduced when Newcastle were bought by the Public Investment Fund of Saudi Arabia.
The case was entirely separate to the 115 charges for alleged financial breaches that City face from the Premier League which is currently being heard in a London courtroom by an independent panel.
The victory in the APT case will now impact how clubs can secure sponsorships, and with it open up more avenues for generating revenue. City are now open to seek damages from the Premier League for lost income since the rules were introduced.
Follow below for all the reaction to the landmark verdict.
Shane Ireland
Sports lawyer gives verdict on Man City 'win'
Christopher Allen, Partner at the law firm Memery Crystal and a football regulation expert, said:
Whilst we have not had sight of the full judgement, based on the reported findings of the Tribunal, it is a little difficult to reconcile both parties claiming some form of victory in this matter.
In footballing terms, it feels very much like a Manchester City win, with the Premier League scoring a consolation goal. I say consolation goal as the Tribunal did not appear to find that the principle of having rules around associated party transactions (APT) in and of itself to be unlawful.
In other words, the aim and the principle of regulating APT is fine. The issue for the Premier League is that both of its attempts to date to bring in rules on the subject have been found to be unlawful.
The unlawful nature of the current APT rules represents two problems. First, with Manchester City having now taken the seismic step of being the first club to bring a claim against the Premier League, it could open the door for other clubs who might have had transactions vetoed by the Premier League as part of the old APT rules to seek redress.
Second, and a point which is being widely reported from the Tribunal judgement, is that interest free shareholder loans perhaps ought to be part of any new APT rules which the Premier League now brings in. We suspect that this could be of concern to up to nine Premier League clubs which are believed to have received such loans.
However, changing the Premier League’s rules may be difficult – typically, it requires the consent of 14 of its members, and it may now be even trickier to persuade clubs to agree on a new set of APT rules.
KEY EVENT
Arsenal, Manchester United among eight clubs who helped Premier League in Man City case
Pep Guardiola may have a new 'hateful eight' after details of Manchester City's legal battle with the Premier League were released.
Back in 2020 when City were temporarily expelled from the Champions League by UEFA, Guardiola was left fuming by the actions of the clubs who wrote to the Court of Arbitration for Sport to try and influence City's appeal. The coach angrily listed the nine clubs - miscast as the 'hateful eight' - in a later press conference and has brought up the incident on a number of times since.
Following the conclusion of the hearing into Associated Party Transaction rules - regulations introduced in late 2021 following Newcastle United's takeover and tightened in 2023 - the report has named clubs that submitted evidence or written statements to support either the Premier League's case or City's. By quirk, there are eight who actively sided with the league.
The report states that league relied upon: "the evidence given by a number of clubs in these proceedings, including Arsenal, Manchester United, Liverpool, and West Ham as well as letters written in support of the APT Rules for the purpose of this arbitration from Brentford, Bournemouth, Fulham, and Wolverhampton Wanderers who are smaller clubs in the PL."
Read the full story, here.
KEY EVENT
Man City damages, PSR chaos, Arsenal issue - what next for Premier League
Manchester City may not be alone in seeking damages from the Premier League after an extraordinary legal victory that leaves all 20 Premier League clubs wanting answers.
City challenged the Premier League over Associated Party Transaction (APT) rules that they believed to be unlawful and - after months of criticism for daring to do it - were proved correct by a heavyweight panel of judges. Not only did City have a philosophical grievance with the commercial strategy, they could also point to real-life examples where the rules had curbed their ability to make money.
With a verdict in their favour, City can now seek money from the league for being untreated unfairly. And given that APTs have been deemed unlawful, other clubs may also have their own examples that will point to them being wronged.
In that respect, City may have some new friends in the Premier League - those who were unwilling to go up against the league directly but will benefit from the Blues doing so. Six clubs opposed the amending of APT rules in 2023 so the good will towards City may extend beyond Newcastle and Chelsea, who supported City's claim.
City may also have made a bonfire of the Profitability and Sustainability regulations that have also been the bane of clubs including Everton, Nottingham Forest, and Leicester. In assessing how APTs were established, the arbitration panel could not fathom why deals with associated parties were so closely monitored but club owners were allowed to pump in money through loans that were below a fair market value.
Read the full story, here.
Joe Bray
Nine clubs who submitted evidence in support of the Premier League
The verdict reveals that nine clubs submitted letters, statements or evidence that were used as part of the Premier League's case.
They were:
- Manchester United
- Liverpool
- Arsenal
- Tottenham
- West Ham
- Brentford
- Bournemouth
- Fulham
- Wolves
Only one club submitted evidence that City relied upon:
- Newcastle
Joe Bray
What does this verdict mean for City's 115 charges?
Monday's verdict will have no bearing on the hearing currently taking place regarding the 115 charges - in the sense that they are two completely different cases being heard by two completely different authorities.
However, having proven the APT rules are unlawful, City will feel their defence in the 115 charges case is boosted, as many of the charges relate to sponsorships and whether City disguised genuine details of their revenues.
While the case may not significantly influence the arbitration hearing currently ongoing around the 115 charges, any evidence of poor governing by the Premier League will help City to further their argument that an independent regulator is needed.
It has been alleged that City concealed payments made by their owner Sheikh Mansour through third parties and disguised them as sponsorship revenue, which in itself was inflated. City have denied any wrongdoing relating to the 115 charges. A decision on the 115 charges is expected in the new year.
Joe Bray
Can City claim any money back?
Yes, after the APT rules were found to be unlawful, City can claim for damages or lost earnings.
Not only that, other clubs can use the ruling to claim against the Premier League for the same reasons.
The specifics of that point come in paragraph 604 of the verdict, which says City can now seek damages from the Premier League, arising out of the harm it has suffered because of the PL acting unlawfully.
Read more about why City brought claims, what they argued, and what happens next.
KEY EVENT
Verdict is damning for the Premier League.. will everyone agree?
Both the Premier League and Manchester City are claiming victory in wildly contrasting statements from this verdict, but playing through the spin there seems to be no doubt that it is City who have chalked up a major win here.
Much of the 175-page document is dry and legal but page 164, carrying the summary of the judges, is particularly damning for the league. It says in no uncertain terms that the APT rules are unlawful, that the amended APT rules are unlawful and that the Premier League were 'procedurally unfair' over two specific deals with City where they also showed 'unreasonable delay'. The Premier League, and all those who rushed to condemn City when news of their legal challenge broke, have been made to look silly.
The change it has on English or world football, or the 115 charges, is likely to be very little. City are not expected to announce that their deal with Etihad has gone up to £45billion a year by next week.
But the victory for City puts a chink in the authority of the Premier League, and with that perhaps the authority of those clubs most vocal about pushing through these deals that have now been judged to be against the law. The Blues may not have become more popular with certain rivals, yet they could have more allies after this result.
It is, surely, a good thing for everyone too for rules that are against the law to be corrected - although something suggests not everyone will see it that way...
Joe Bray
Can the Premier League appeal the verdict?
It is not thought that the Premier League can appeal the verdict of the tribunal, and in their statement they say will continue to operate the existing APT system, 'taking into account the findings made by the tribunal.'
Their statement paints the verdict as an endorsement of the rules, albeit with a 'small number of discrete elements of the Rules which do not, in their current form, comply with competition and public law requirements'.
It continues that: "these elements can quickly and effectively be remedied by the League and clubs."
Joe Bray
Who was on the tribunal panel?
As our Chief City Writer Simon Bajkowski explains, there is plenty to digest after the headline verdict.
But the panel of a former Supreme Court Justice, a former Judge of the European Court of Justice, and a former High Court Judge means the verdict will carry plenty of weight.
Simon tweets:
It's going to take time and expertise to untangle a 178-page ruling, but a three-man panel of (former High Court judge) Sir Nigel Teare, (former EU Cour of Justice judge) Christopher Vajda KC and (former Supreme Court Justice) Lord Dyson means this is a heavyweight decision.
KEY EVENT
Full story: City and Premier League issue statements
Manchester City have welcomed the finding of an arbitration panel after chalking up a significant victory over the Premier League over sponsorship rules.
The Blues challenged the Premier League over its increasingly tight regulating of Associated Party Transaction Rules that were pushed through in 2021, months after Newcastle United's takeover. Despite the changes over the last few years being agreed by the majority of clubs, an arbitration hearing in June agreed with City that the new rules did not make sense and must be addressed.
The implementation of both the original Association Party Transaction Rules in 2021 and subsequent amendments were deemed to be unlawful, and the tribunal found that the league's treatment of City in two separate deals was 'procedurally unfair'. On top of this, there were 'unreasonable delays' behind the decisions.
A statement on the club site read:
"Following today’s publication of the Rule X Arbitral Tribunal Award, Manchester City Football Club thanks the distinguished members of the Arbitral Tribunal for their work and considerations and welcomes their findings."
Read the full story here.
Joe Bray
Premier League statement claims victory
While City have been successful in proving the APT rules were unlawful, the Premier League have painted the verdict as a victory of their own.
In a statement, they said:
"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.
"In the meantime, the Premier League will continue to operate the existing APT system, taking into account the findings made by the Tribunal."
Joe Bray
City statement
Manchester City have released the following statement:
"Following today’s publication of the Rule X Arbitral Tribunal Award, Manchester City Football Club thanks the distinguished members of the Arbitral Tribunal for their work and considerations and welcomes their findings:
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 statement continues to list the Tribunal's findings:
- 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.
KEY EVENT
FULL STORY: City inflict huge defeat on 'unlawful' Premier League in APT legal challenge
Manchester City won a substantial victory against the Premier League after a panel deemed both current and original Associated Party Transaction (APT) Rules to be unlawful.
City brought the unprecedented challenge to the league over its APT rules after claiming them to be discriminatory and bad for business. Brought in months after Newcastle's takeover in 2021 and then made even stricter in 2023, the Blues argued that the Premier League's political motivations for bringing the rules in clouded them to the reality that it was a poor decision commercially.
As has been the case with the more serious Premier League charges City are facing, an arbitration hearing was held in front of an independent panel but behind closed doors for both sides to put their argument. After two weeks of debate, the verdict has now been written up and released - and it does not make pleasant reading for the league.
Not only did the tribunal decide that the Premier League rules breached competition law and are therefore legally void, it found that the Premier League was specifically unfair in how it had applied the rules to City. The club can now seek damages from the Premier League as a result of the decision, reached by a former Supreme Court Justice, a former Judge of the European Court of Justice, and a former High Court Judge.
Read the full story here.
Joe Bray
Good afternoon
Hello and welcome to live coverage as Manchester City have been successful in their legal challenge against the Premier League regarding Associated Party Transaction rules.
We will bring you all the reaction to this landmark result including what it means, what City have said, and what happens now.
Stick around.
