Man City FFP: Sports lawyer tips 115 charges ‘score draw’ as ‘very, very personal’ issue raised

Manchester City’s trial into their FFP charges will end in a “score draw” according to a renowned sports lawyer, with “the Premier League to win some of the 115”. City were hit with the 115 charges – later upgraded to 130 – in February 2023, and an independent hearing into the alleged breaches finished at the end of last year. A number of sanctions have been touted, including points penalties, transfer embargoes, stripping titles and even complete expulsion from the Premier League. In response, Man City battled back against the Premier League, campaigning for Associated Party Transaction (APT) rules to be removed. 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. A ‘bombshell verdict’ in February revealed Man City’s ‘significant victory’ with the original APT rules deemed ‘null and void’. The City lawyers successfully argued that financial loans from shareholders to their clubs should also be treated as a subsidy and, in the case where the loans have zero or low interest, should therefore have a notional interest rate applied for PSR. After claiming victory in that case, City now want the rules applied retroactively, which would impact Arsenal more than any other Premier League club, as they have the highest shareholder loans at £324m. Football finance expert Kieran Maguire offered his analysis to TBR Football on what the retroactive application of the APT rules might mean for Arsenal. “Arsenal had a net interest cost of £5m in 2022 and £6m in 2023,” The Price of Football author said. “The Kroenke loans aren’t that critical in the overall picture, so I don’t see this is as being an issue. “There is a broader issue in the sense that City and Arsenal are the best of enemies. It’s very, very personal between the two clubs. This is an opportunity to score points against Arsenal and protect their own interests as far as City are concerned. MORE ON MAN CITY FROM F365: 👉 Man City FFP: Guardiola’s 28-man squad ranked on post-relegation exit likelihood with verdict looming 👉 Man City top scorers against the Big Six: Erling Haaland clear of Sterling with only two players ahead 👉 Richards tells Man City that De Bruyne is ‘still good enough’ as decision on ‘maverick’ questioned “I think we will see some sort of transitional rule with the APTs. We have already seen Brighton’s loans from Tony Bloom have been converted into something that is between shares and debt. “There will be discussions taking place between clubs, lawyers and accountants as to how existing loans can be reclassified as equity. Therefore, that will assist things going forward.” Maguire also gave a brief update on The Big Case as we continue to wait for a verdict we were expecting to have heard by now, revealing what renowned sports lawyer Nick DeMarco reckons will be the outcome. “I think, based on historical evidence, that City have got the upper hand over the Premier League. Nick DeMarco thinks it will be a score draw where the Premier League will win some of the 115 charges but City will have a far stronger case in others.”