Manchester City could find out a verdict against the Premier League imminently, as they argue against sponsorship rules within the English top-flight.
In a legal case that is separate to the hearing into Manchester City’s 115 alleged breaches of Premier League financial rules, the Etihad outfit are challenging the ‘associated-party’ transaction (APT) financial rules.
APT safeguards were introduced nearly three years ago in December 2021 following the contentious Saudi Arabian-backed takeover of Newcastle United.
Its aim is to stop clubs using inflated sponsorship deals with companies linked to their owners, and to ensure fair market value on player trading between teams under multi-club ownerships.
According to the Telegraph, some clubs fear that if City win their appeal, then the competitive balance of the Premier League will be damaged with financial controls weakened – leading to a drop in global interest.
Manchester City will learn the outcome of charges they have brought against the Premier League’s associated party transaction rules ‘over the next coming days’ according to reports
Pep Guardiola’s side took legal action against these sanctions that they deem as a form of ‘discrimination’ in February
The Premier League handbook states that the rules seek to ensure ‘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.’
City took legal action against these sanctions that they deem as a form of ‘discrimination’ in February – with Pep Guardiola’s side unhappy at the governing of market value of transfers and sponsors.
And the Telegraph report that they will learn their fate on this issue over the next coming days – with a Premier League shareholders’ meeting happening on Thursday too.
And as detailed by the Times, who have seen City’s legal claim, the Premier League champions are seeking ‘damages for the losses which it [claims to have] incurred as a result of [what they alleged to be] the unlawfulness of the FMV [fair market value] rules’, their case says, adding that rival clubs are looking to ‘safeguard their own commercial advantages’.
A Premier League shareholders’ meeting is happening on Thursday – with outcome on City to follow in the days after that, according to the Telegraph
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.’