Manchester City have written to every top-flight club rubbishing the Premier League’s statement after the pair’s legal battle on sponsorship rules concluded.
In an astonishing, unprecedented move which further underlines the civil war that has broken out in English football, the champions have accused league bosses of ‘misleading’ sides by providing ‘inaccuracies’.
City claimed a landmark victory after a tribunal found league rules around commercial deals with parties linked to club owners to be unlawful.
However, in a subsequent statement of more than 1,200 words on Monday, the Premier League downplayed the significance of the verdict.
They claimed that the tribunal had, on the whole, backed their Associated Party Transaction (APT) Rules but had ‘identified a small number of discrete elements…which do not, in current form, comply with competition and public law requirements’.
Manchester City have written to all 19 Premier League clubs in the wake of Monday’s victory
In the email, the club accused league bosses of ‘misleading’ sides by providing ‘inaccuracies’
Premier League rivals Arsenal were among the eight teams to provide evidence against them
That move clearly triggered outrage at City who on Monday night accused the Premier League of being misleading in an email sent to all its clubs – and the league itself.
While the Premier League declined to comment, officials reject any notion that their statement was misleading or inaccurate as the row rages on.
In the message, seen by Mail Sport, City’s general counsel Simon Cliff says bluntly: ‘regrettably the (league’s) summary is misleading and contains several inaccuracies’.
‘Of even greater concern,’ Cliff adds, ‘is the Premier League’s suggestion that new APT rules should be passed within the next 10 days.
When the Premier League consulted on and proposed the original APT Rules in late 2021, we pointed out that the process (which took several weeks) was rushed, ill-thought-out and would result in rules that were anti-competitive. The recent Award has validated those concerns entirely.’
Cliff informs clubs that the panel found APT rules, aimed at preventing clubs from agreeing inflated deals with companies linked to their owners, unlawful and that, contrary to the top-flight’s comments, the decision renders all of the rules ‘null and void’.
The club’s general counsel Simon Cliff sent the email – which has been seen by Mail Sport – on Monday evening
‘In recent correspondence,’ Cliff writes, ‘the Premier League agreed with MCFC that this is an issue which will need to be resolved by the Tribunal. It is therefore remarkable that the Premier League is now seeking to involve the member clubs in a process to amend the APT Rules at a time when it does not even know the status of those rules’.
The searing missive takes another swipe at the Premier League and warns of further, potentially costly, legal action.
This is the time for careful reflection and consideration by all clubs, and not for a knee-jerk reaction,’ Cliff states. ‘Such an unwise course would be likely to lead to further legal proceedings with further legal costs. It is critical for member clubs to feel that they can have trust in their regulator.’
City then clarify a number of points in direct conflict to the top-flight’s statement. It rejects their claim that the decision ‘endorsed’ the rules nor stated that they were ‘necessary’.
Cliff adds that the Premier League’s claim that ‘certain discrete elements’ of the rules were identified to be amended as ‘not correct’.
The serial winners took legal action against sanctions over Associated Party Transactions (APT) in February
The Premier League (chief executive Richard Masters pictured) will invite all clubs to an emergency meeting next week to discuss next steps
The finding, he says, means the rules are ‘void and not capable of enforcement’.
Summing up, Cliff then informs clubs the Tribunal found the rules were unlawful because they constitute a restriction of competition, an abuse of the Premier League’s dominant position and are discriminatory because they exclude shareholder loans made by owners and investors to clubs at favourable rates.
‘If any member clubs have any questions about the Award, we would be very happy to assist them as best we can,’ Cliff signs off.
The Premier League will invite all of its clubs to an emergency meeting next week to discuss the tribunal’s findings and next steps. However, a vote on rule amendments is not expected to take place.