As Manchester City celebrates their massive legal victory over the Premier League, the focus now shifts to the potential ripple effects of this landmark decision. Despite the Premier League’s attempts to frame the result as a win, the arbitration tribunal found that the league’s Associated Party Transaction (APT) rules were not only unlawful but also discriminatory and a misuse of power. While the tribunal acknowledged the need for such rules, it’s a stretch for the Premier League to claim victory after being found in violation of UK competition law.
So, what does this mean for City? In simple terms, the club now has the green light to claim damages from the Premier League for any financial losses they may have incurred due to the enforcement of the APT rules since 2021. This step is expected to follow swiftly after the case, as City argued that they were denied certain business opportunities under these rules.
With the APT rules likely to be revised or potentially discarded, City could secure the sponsorship deals that were at the heart of the dispute. If they manage to claim damages and land more lucrative sponsorships, City’s financial position will be strengthened. This would allow them more freedom under the Premier League‘s financial regulations, which could be a game-changer for their future transfer activities.
Additionally, with City recently setting a British record for revenue at £712.8m and doubling their profits to £80.4m, this victory could give them even more financial firepower. This boost would not only aid their transfer dealings but also support their ongoing £300m expansion of the Etihad Stadium.
