Man City FFP verdict ‘expected imminently’ as Premier League clubs fear ‘far-reaching consequences’
We will reportedly learn the outcome of Manchester City’s colossal associated party transaction (APT) legal case against the Premier League ‘in the coming days’.
In June, a legal dispute between Man City and the Premier League over APT rules began.
The hearing could have huge ramifications on the Premier League as City reportedly challenge the validity of the rules under UK competition law.
The hearing lasted until June 21 and the separate court case relating to the 115 charges against the champions got underway earlier this month, with a verdict not likely until 2025.
It is believed that Pep Guardiola’s side want to scrap APT rules, which were first introduced in December 2021 following the Saudi-led takeover of Newcastle United and were strengthened earlier this year.
The rules are designed to ensure any commercial deal or player transfer between a club and entities with links to that club’s ownership are conducted at fair market value, so that club revenues are not artificially inflated.
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If an arbitration panel declares the APT rules invalid, then clubs would effectively be free to do any commercial deals they wished without any independent judgement being made on whether those deals were for fair market value.
That could then in turn help clubs boost their declared revenue and give them greater leeway on transfer and wages spending under financial sustainability rules.
There are fears it could lead to the clubs whose owners have the deepest pockets – City and Newcastle – effectively being in a league of their own in terms of spending.
Premier League clubs await Man City verdict with potential ‘far-reaching consequences’
It has been reported by The Telegraph that the verdict in City’s ‘unprecedented’ case against the Premier League is ‘imminent’.
The report confirms that there was a two-week arbitration in June and a Premier League shareholders’ meeting of clubs will take place on Thursday, meaning ‘the outcome is expected over the coming days’.
It is added:
City are seeking “damages for the losses which it has incurred as a result of the unlawfulness of the FMV [fair market value] rules”, their case says, adding that rival clubs are looking to “safeguard their own commercial advantages”.
The rules were “deliberately intended to stifle commercial freedoms of particular clubs in particular circumstances, and thus to restrict economic competition”, the claim reportedly says.
“There is no rational or logical connection between a club’s financial non-sustainability and its receipt of revenues from entities linked to ownerships,” City state.
The report adds that there are fears that a positive outcome for City ‘would weaken financial controls and damage competitiveness in a way that could have far-reaching consequences’
The Premier League rulebook states:
“The long-term financial sustainability of clubs by extinguishing reliance on enhanced commercial revenues received from entities linked to the club’s ownership; and fairness amongst clubs, so that clubs are not able to derive an unfair advantage over domestic competitors by increasing revenues or reducing costs via arrangements with entities linked to a club’s ownership.”
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