Manchester City went up against the Premier League over Associated Party Transaction rules and rival clubs gave evidence.
Eight clubs backed the Premier League in their legal battle with Manchester City over Associated Party Transaction (APT) rules, it has been reported.
In June, it was reported that City had launched unprecedented legal action against the Premier League in a bid to stop APT rules which were brought in back in 2021.
The regulations were imposed following on from the Saudi-backed takeover of Newcastle United and were designed to maintain the competitiveness of the Premier League and stop clubs inflating commercial deals with businesses associated with their owners.
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However City, who are owned by the Abu Dhabi United Group, argued that the rules are “unlawful” and submitted 165-page legal document ahead of a hearing.
It’s now been reported by Mike Keegan of the Daily Mail that City scored a “seismic victory” as a panel concurred with City’s “unlawful” claims.
They also ruled that the Premier League were wrong to block two of City’s sponsorship deals – including a proposed fresh contract with sponsor Etihad Airways.
The case is separate to the ongoing hearing focusing City’s 115 alleged breaches of Premier League rules but a slew of clubs did give evidence in this tribunal.
Image: Getty
Although a number of their claims were dismissed by the panel, City were victorious in seven of their key arguments, having only needed to prove unlawful rules were in place for just one reason.
In a huge victory, City were also able to prove that UK competition law was violated with the current (amended) APT rules.
A statement from City read: “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 Premier League also published a lengthy statement on the findings, which were sent to all clubs in a 175-page document.
As a result of the verdict, the APT Rules must now be altered with the removal of some amendments previously made and the integration of the assessment of Shareholder loans.
