Daily Reports
Manchester City has initiated legal proceedings against the English Premier League (EPL) over the league's Associated Party Transactions (APT) rules, which regulate commercial deals involving companies owned or associated with club owners. The primary issue, as highlighted by the UK's Times, is City's claim that these rules are discriminatory and illegal. The APT rules, introduced in December 2021 following Saudi Arabia's takeover of Newcastle United, require that such dealings be independently assessed to verify their market value.
The City's ownership structure includes the Abu Dhabi United Group, controlled by Sheikh Mansour bin Zayed. This structure has led to allegations of unfair advantages due to high-value sponsorship deals with companies owned by the club's proprietors. City asserts that they have been subject to 'discrimination' and face the 'tyranny of the majority', given the EPL's decision-making process, where at least 14 out of 20 clubs must agree to any regulatory changes.
The legal battle is set for a two-week private arbitration hearing starting on June 10. While the EPL declined to comment, City has not responded to requests for comments, and the litigation document remains unverified. If City prevails, the ruling could profoundly impact another pending case involving the club. The Premier League had previously charged City with over 100 financial breaches, with allegations spanning inaccurate financial disclosures, non-compliance with UEFA Financial Fair Play (FFP) regulations, and violations of the league's profit and sustainability rules.
Despite these legal hurdles, City achieved a historic milestone by winning a fourth consecutive Premier League title and securing their first Champions League title in 2023. Yet, these triumphs are often overshadowed by ongoing references to their alleged financial violations. Club President Khaldoon Al Mubarak expressed frustration over these persistent allegations but emphasized trusting the process and waiting for judgments based on facts rather than claims.
- If the APT rules are annulled, wealthier clubs could benefit significantly by increasing the financial inflows from sponsors without EPL oversight. This legal action aligns with City's counter-claim to the Premier League's accusations of 115 financial irregularities between 2009 and 2018.
- City's legal strategy involves contesting that the APT rules were specially designed to limit their dominance in English football. The rule necessitates that agreements with companies owned by club proprietors be independently assessed to ensure market fairness, aiming to prevent financial doping. approximately one-third of City's sponsorships, including the primary sponsor Etihad, originate from the UAE.
- The EPL case's results, expected potentially by the summer of 2025, could result in severe consequences for City, including points deductions or possible relegation if found guilty of the alleged financial breaches. Meanwhile, about 10 to 12 clubs have expressed willingness to support the EPL's stance if called to testify.
