Man City APT ‘legal victory’ to be ‘seismic’ on one condition with FFP verdict ‘due imminently’
Manchester City’s latest ‘legal victory’ reportedly could have ‘seismic’ consequences as it ‘opens the door for legal action’ against the Premier League.
Man City have been embroiled in several legal disputes with the Premier League over the past couple of years.
At the start of 2023, Man City were charged with breaching over 100 of the Premier League’s Financial Fair Play rules and were referred to an independent commission. This followed a four-year probe into their operation between 2009 and 2018.
Pep Guardiola‘s side have insisted their innocence but face a huge fine, transfer ban, points deduction or expulsion from the Premier League if found guilty.
In response, Man City battled back against the Premier League, campaigning for Associated Party Transaction (APT) rules to be removed.
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The Premier League implemented these rules to prevent clubs, Man City and Newcastle United mainly, from signing sponsorship deals with associated parties at inflated prices.
Man City have previously had a couple of major sponsorship deals blocked and argued that the Premier League’s APT rules are unlawful.
The Daily Mail’s Mike Keegan revealed this could plunge the Premier League into ‘chaos’ as Man City have also launched a legal challenge against the amended rules voted through in November.
A report from Sky Sports confirms Man City’s ‘legal victory’, but there are ‘conflicting interpretations of its significance’.
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The report explains.
‘In a case brought by City, an independent panel has determined that Associated Party Transaction (APT) rules are void and unenforceable.
‘It is believed this ruling could be seismic on a number of levels and open the door for legal action, however the Premier League insists that would hinge on the panel’s findings over the new APT rules.
‘City this month launched a fresh challenge against the amended rules, as voted in by a majority of Premier League clubs in November, and are confident the tribunal will rule in their favour.
‘The Premier League insists this judgement from the panel does not impact the rules in their current form and clubs are expected to continue following them as they await a verdict.’
While Man City are ‘hopeful’ of a ‘third’ victory, the report also provides an update on their FFP situation.
‘City are hoping a panel rules for the third time in their favour, arguing that the Premier League amended rules in November that it has now been found should never have been in place.
‘This is all before the verdict is delivered on a far bigger and more consequential case, with a verdict due imminently into more than 100 alleged breaches of financial rules stretching back to 2009.’