
In a letter sent by City’s general counsel, Simon Cliff, on Monday, the reigning champions pointed out multiple inaccuracies in the Premier League’s summary of the arbitration panel’s ruling. Both parties have claimed success in the verdict of City’s challenge against the league’s Associated Party Transaction (APT) rules. Manchester City, owned by the Abu Dhabi-backed City Football Group, succeeded in having two aspects of the APT rules deemed unlawful.
City asserts that their legal action was victorious, but the Premier League maintains that most of City’s challenges were rejected, reinforcing the APT system’s objectives. The APT rules aim to ensure sponsorship deals linked to club owners reflect fair market value.
Neither City nor the Premier League have commented on the letter publicly. However, a senior Premier League source has denied the claims of misleading summaries. A consultation with Premier League clubs is scheduled to discuss the ramifications, though no formal voting will take place.
This case is distinct from the 115 charges City faces regarding alleged financial rule breaches dating back to 2009, which the club denies.
Key Points from the Letter
The letter clarifies the tribunal’s ruling, emphasizing that the Premier League’s summary was inaccurate. According to Cliff, the tribunal declared the APT rules unlawful, making them void. He refuted the Premier League’s assertion that the tribunal endorsed the APT system and its framework, stating the tribunal’s decision found the rules were unlawful under competition and public law.
Cliff also criticized the Premier League’s plan to amend APT rules within 10 days, warning that such a move could lead to further legal disputes and costs. Despite the tribunal’s ruling that some aspects of the APT rules were unlawful, the Premier League is confident it can amend the regulations to comply with the law.
City’s letter highlights significant disagreements between the club and the Premier League over financial regulations and may lead to further legal challenges, including compensation claims.
The dispute underscores widening divisions among Premier League clubs over financial rules, with some concerned that changes to APT regulations could give competitors an unfair advantage by allowing them to increase commercial revenue. Meanwhile, the legal case adds uncertainty to City’s ongoing battle over over 100 charges of financial misconduct.
This ongoing legal struggle indicates that the rift between Manchester City and the Premier League is far from over.
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