‘Man City could claim millions in Premier League compensation after APT ruling’
Man City may be able to claim millions of pounds in compensation from the Premier League after APT rules were found to be unlawful, according to Stefan Borson.
The Premier League introduced rules on associated party transactions (APT) in 2021, in order to regulate sponsorship deals involving club-linked entities.
However, a tribunal has ruled that APT rules used between 2021 and 2024 were void and unenforceable.
Man City had at least three transactions affected in that time period, with two of them being rejected or adjusted.
Those deals were an Abu Dhabi Bank (FAB) sponsorship which was at a capped fair market value, lower than initially proposed, an Etihad Aviation Group (EAG) sponsorship due to the latter years of a proposed long-term contract, and an Emirates Palace (EP) sponsorship that was initially rejected, but later approved.
The FAB deal is City’s strongest case for compensation, the deal was submitted in April 2023, but took over six months to be ruled on, causing City to be unable to receive the first payment during the dispute.
The final determination was that the FAB deal was not at fair market value, and as such, City were required to vary the transaction so that it did not exceed fair market value.
Financial expert Borson says it would appear that City are able to show a loss between what they were offered, and what they received under APT rules. As a result of taking the deal at a lower amount, he thinks that it is hard to see how City could have mitigated this loss and that this is lost revenue.
City would be able to claim the difference between the submitted APT deal, and the capped final deal, as well as interest and costs of the process, which could be in the “low single millions’ for the 2023/24 and 2024/25 seasons.
As pointed out by Borson, in English law, damages are awarded to put the claimant in the position they would have been in, but for the wrongdoing.
Man City are expected to launch a new legal challenge against APT rules, as they are still in effect in the Premier League.
Pep Guardiola faces an uncertain future at Man City with 115 charges against the club
Football Insider Verdict
Pep Guardiola acknowledged the uncomfortable spectre that lingers over the Premier League champions, earlier this month.
Guardiola made a rare comment on the 115 charges that Man City face in a press conference on 7 February, saying: “In one month, I think there will be a verdict and the sentence.”
The results of the ruling against the Citizens have been heavily speculated on, with anything ranging from a fine, to a massive points deduction, depending on who is speaking on the subject.
If it is the latter, with some estimations being a 60 or even 100 point deduction, Guardiola could choose to leave the club he has brought so much success to.
City have faltered this season, following four successive Premier League titles, and a first Champions League victory.
The pressure appears to have taken its toll on the former Barcelona manager, as Guardiola appeared for a Man City post-match interview with scratches on his head and face after a draw with Feyenoord.
Man City bounce back from loss to Real Madrid with Newcastle victory
Man City signed Omar Marmoush from Frankfurt in January, and the Egyptian announced his arrival with a first-half hattrick against Newcastle on 15 February.
The result, and the former Frankfurt striker’s performance, will be a major boost to Guardiola, having watched his side give up a 2-1 lead, to lose 3-2 against Real Madrid on Tuesday (11 February).