Club Seeks Damages After Tribunal Declares APT Rules Unlawful
Manchester City has secured a significant victory in its legal battle against the Premier League regarding the Associated Party Transaction (APT) rules. The club, which is also facing charges of 115 breaches of the Premier League’s financial regulations, challenged the APT rules in court and emerged triumphant.
The APT rules, introduced after Saudi Arabia’s takeover of Newcastle United, regulate commercial deals between clubs and their associated parties. Manchester City argued that the rules were unfair, and the Tribunal agreed, ruling that the APT regulations violated UK competition law and procedural fairness.
Following this victory, City plans to seek damages for lost income since the introduction of the rules. The club also expects the ruling to impact how all Premier League clubs negotiate sponsorship deals moving forward.
In an official statement on Manchester City’s website, the club expressed satisfaction with the ruling:
“Manchester City Football Club thanks the distinguished members of the Arbitral Tribunal for their work and considerations and welcomes their findings. The Club has succeeded with its claim: the Associated Party Transaction (APT) rules have been found to be unlawful, and the Premier League’s decisions on two specific MCFC sponsorship transactions have been set aside.”
The Tribunal found that both the original and amended APT rules violated competition law, procedural fairness, and were structurally unfair in their application. It also determined that the Premier League had abused its dominant position and delayed assessments on two of the club’s sponsorship transactions.
Manchester City’s legal victory now places pressure on the Premier League to reform its approach to sponsorship transactions and could reshape commercial practices within the league.
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