Manchester City celebrated a major victory after an arbitration panel sided with them in their legal challenge against the Premier League’s Associated Party Transaction (APT) rules. These rules, introduced in 2021 after the Newcastle United takeover, imposed strict limits on sponsorship deals involving club affiliates. City contended that these rules were unfair and discriminatory, particularly in their application to two of the club’s sponsorship deals.
An arbitration tribunal agreed with City, deeming the APT rules unlawful. They ruled that the Premier League’s handling of City’s sponsorship deals was “procedurally unfair” and that there were “unreasonable delays” in the decision-making process. The tribunal found that the Premier League had violated UK competition law and abused its dominant position, further stating that the rules unfairly excluded shareholder loans and didn’t meet standards of procedural fairness.
A statement from City expressed gratitude for the tribunal’s findings and detailed the victory, noting that the decisions on two specific sponsorship transactions were overturned. The tribunal also criticized the Premier League for not assessing the fair market value of City’s sponsorship deals in a timely manner, breaching its own regulations.
On the other hand, the Premier League issued its own statement, maintaining that the tribunal had largely upheld the need for the APT system, which ensures financial fairness and integrity. However, they acknowledged the tribunal’s critique of certain aspects of the rules, which will need to be remedied.
This ruling opens the door for Manchester City to potentially seek damages for lost revenue under the previously restrictive regulations.
