Manchester City and the Premier League are embroiled in a legal battle over new rules regarding “Associated Party Transactions” (APT).
This rule governs sponsorship deals from companies linked to club owners.
Both sides are claiming partial victory in this dispute after a recent tribunal ruling.
City sought to overturn the APT regulations, arguing they were unfairly blocked from securing two significant sponsorship deals.
A panel of senior judges, sided with City on key points, ruling that the current regulations were “unlawful” and that City had been “procedurally unfairly” treated.
Specifically, the tribunal found that loans from shareholders should not be excluded from the APT calculations, and that City was unfairly prevented from responding to Premier League decisions on the fair market value of sponsorships.
Despite this, many of City’s other claims were rejected.
The Premier League responded by emphasizing that the tribunal upheld the overall framework and necessity of the APT system, which is designed to ensure financial fairness across clubs.
This legal battle is part of a broader conflict between City and the Premier League, which also includes the ongoing investigation into City’s alleged 115 breaches of financial rules.
The APT rules were introduced in February with a narrow vote from Premier League clubs, aimed at preventing clubs from circumventing financial controls through sponsorships or transfers between owner-linked entities.
The ruling, while favouring City on certain aspects, has sparked further tension between the two sides as the legal and financial battle of the club continues.
