Manchester City secured a significant partial victory against the Premier League on Monday after an arbitration panel ruled on the club’s Associated Party Transactions (APT) that had previously been blocked. This ruling, seen as a landmark decision by some observers, indicated that certain aspects of the Premier League’s APT rules violated British competition law and were procedurally unfair. The panel specifically noted that decisions regarding two of City’s transactions in 2023 with First Abu Dhabi Bank and Etihad Aviation Group must be overturned due to the unfair application of these rules.
The APT rules were designed to prevent clubs from inflating sponsorship deal values with companies linked to their owners, thereby maintaining the competitiveness of the league. City, owned by Sheikh Mansour’s Abu Dhabi United Group since 2008, stated that the ruling underscored the unfairness and discriminatory nature of the APT system, which had excluded shareholder loans while allowing non-commercial sponsorship agreements. The club expressed satisfaction with the panel’s findings, emphasizing that the Premier League had abused its dominant position.
Despite this victory, the Premier League maintained that the majority of City’s challenges were dismissed and that the APT rules remain crucial for the league’s financial controls. Meanwhile, City faces a separate independent hearing regarding alleged breaches of Premier League financial regulations, with a verdict expected before the end of the current season. This latest development in the ongoing scrutiny of financial practices within the league highlights the complex and often contentious relationship between clubs and governing bodies, as they navigate issues of competition, fairness, and regulatory compliance.
