Man City win huge legal battle against Premier League

An independent tribunal has declared the Premier League's previous iteration of Associated Party Transaction (APT) rules to be "void and unenforceable", siding with Manchester City in a legal battle which could have huge repercussions for clubs across the division.

APT rules were first introduced in 2021 as a way of preventing clubs from agreeing inflated sponsorship agreements with "associated parties".

Any deal between a team, player or manager and a related entity had to undergo a "fair market value" assessment. This was to theoretically ensure that owners were not unfairly awarding themselves oversized contracts to boost their revenue and thereby circumnavigate the league's restriction on spending.

City, who were blocked from striking a large agreement with Abu Dhabi-based Etihad Airways in 2023, challenged these regulations in June 2024. An initial verdict was released in October which saw both parties claim victory.

The tribunal deemed three elements of the first draft of APT rules to be "unlawful". The Premier League wrote that off as a minor resolution and swiftly staged a vote to bring in a new, marginally amended, set of statutes. It was passed by a majority of 16-4 in November at a vote between all 20 clubs in the division.

England's top flight are similarly triumphant in the wake of this latest verdict - which was still ruling on those past regulations. "The previous APT rules are no longer in place," an official Premier League statement declared. "This decision expressly does not impact the valid operation of the new rules."

Swiftly after the November vote was made, Manchester City challenged the new APT rules. A tribunal is currently judging that case.

While the Premier League is correct in their assertion that the recent verdict has no immediate bearing on the current regulations, its statement completely overlooks the fact that - between December 2021 and November 2024 - England's top-tier clubs were held to regulations that are now legally deemed to be "void and unenforceable".

Any club that was denied a lucrative sponsorship deal during this near three-year stretch could theoretically sue the Premier League. Given Manchester City had multiple agreements rebuffed and have proven to be unashamedly litigious, there is every chance they engage in another legal battle with the division.

All these resolutions are - ostensibly - unrelated to the 115 charges levelled against City by the Premier League for systemic breaches of financial fair play regulations over multiple years. Pep Guardiola recently revealed that a verdict for that enormous case is expected in March at some point.

READ THE LATEST MAN CITY NEWS, TRANSFER RUMOURS & GOSSIP