Man City APT: ‘New legal challenge’ mooted after ‘stunning twist’ with ‘further action’ looming
Manchester City could reportedly ‘launch a new legal challenge’ after Premier League rivals voted in favour of changes to APT rules.
At the start of 2023, Man City was charged with breaching over 100 of the Premier League’s Financial Fair Play rules. Following a four-year probe into their conduct between 2009 and 2018, they were referred to an independent commission.
Since this reveal, Pep Guardiola‘s side have been embroiled in a bitter battle with the Premier League as they have insisted on their innocence.
This case has already dragged on for longer than most would have liked but it is a complicated situation and the potential consequences are severe. If found guilty, they could be given a huge fine, points deduction, transfer ban, expulsion or be stripped of their Premier League titles.
Earlier this year, Man City launched another legal battle against the Premier League as they campaigned for the removal of Associated Party Transaction rules.
This separate hearing had the potential to dramatically alter their FFP case. If they were successful, it is understood that a significant portion of their charges would become redundant.
READ: Pep Guardiola at Man City: A damning indictment of inferiority for each of the Big Six
While the FFP case remains ongoing, the APT hearing has already concluded. Man City did not force the rules to be removed, but it was ruled that a couple of components of the regulations were unlawful.
This forced the Premier League to amend their regulations and they opted to return to the original rules implemented in 2021.
Man City have opposed this move, but a 16-club majority of Premier League teams voted in favour of the amended rules on Friday.
Aston Villa, Newcastle United and Nottingham Forest backed City. A Premier League statement said: “At a Premier League Shareholders’ meeting today, clubs approved changes to the League’s Associated Party Transaction (APT) rules.
“The amendments to the rules address the findings of an Arbitration Tribunal following a legal challenge by Manchester City to the APT system earlier this year.”
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“The Premier League consultation with clubs has conducted a detailed informed by multiple opinions from expert, independent Leading Counsel – to draft rule changes that address amendments required to the system.
“This relates to integrating the assessment of Shareholder loans, the removal of some of the amendments made to APT rules earlier this year and changes to the process by which relevant information from the League’s ‘databank’ is shared with a club’s advisors.
“The purpose of the APT rules is to 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.”
A follow-up report from Football Insider claims Man City will ‘review their APT situation before taking further action’ and ‘could launch a new legal challenge’ after this ‘stunning twist’.
‘Sources have told Football Insider Man City could now look to challenge the APT rules again as the amendments have largely just seen the Premier League return to the original regulations from 2021.
‘Sources have told Football Insider Pep Guardiola’s side will now likely look to take stock and review the situation before deciding to push ahead with any further legal action.’