Man City thought to be threatening Premier League legal action after multi-club ownership rule change

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Published on 2024-02-09 15:01:54

Premier League clubs met at a shareholders’ meeting and agreed to implement stricter rules regarding Associated Party Transactions (APT).

These measures are aimed at preventing clubs from engaging in sponsorship deals with companies that have ownership links. The new rules were passed at the meeting in central London, following a review of the existing APT rules and Fair Market Value assessment protocols.

However, reports indicate that the vote was not unanimous, and Manchester City, known for their opposition to the rule changes, is threatening legal action, possibly seeking arbitration over the proposals.

These APT rules are designed to ensure fairness among English football’s elite teams by preventing clubs from signing commercial deals at inflated prices or circumventing cost controls on player dealing, thereby allowing them to spend even greater sums on players.

Manchester City, currently facing charges of breaching Financial Fair Play (FFP) rules, has expressed that the APT changes are unlawful in English competition law, according to Sky News.

However, the Premier League is confident that they are on solid legal ground. Other clubs have also raised concerns over the impact of related-party deals on the competitive balance of the Premier League, particularly with regards to state-owned clubs such as Manchester City and Newcastle United.

Clubs with close partnerships with other international clubs, such as Chelsea, Newcastle, and City, have the most to lose from the new rules.

Additionally, concerns have been raised about the value of Chelsea’s one-year shirt sponsorship deal with Infinite Athlete, given the club’s failure to qualify for European competitions.

The news comes shortly after City was informed that they would need to provide evidence of fair market value before signing a certain player, highlighting the increasing scrutiny faced by clubs with close links to other teams.

The resistance from certain clubs and the potential for legal action suggests that the implementation of the new APT rules may lead to disputes and challenges within the Premier League. These developments will be closely monitored to see how they may impact the financial dealings and competitive balance of the league.

Read Original article on Football365