Dr Dan tips Man City to launch ‘legal challenge’ as best-ever deal hangs in balance
Man City may contest new related party restrictions as they could prevent them from signing unprecedented sponsorship contracts.
So says finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about the Premier League’s new frameworks for commercial deals.
As relayed by The Times last Tuesday (14 December), top-flight clubs have agreed to a new set of rules to prevent inflated-value sponsorship.
All new commercial deals will be assessed by a third party who will determine whether they constitute fair market value.
It is understood that City, alongside fellow gulf state-financed Newcastle United, see the measures as an attempt to restrict their commercial growth.
Plumley predicts that both clubs could take the fight to the courtroom as they look to overturn the Premier League’s new rules.
“People are already talking about legal challenges,” the Sheffield Hallam University expert told Football Insider‘s Adam Williams.
“The interesting point is there is still an issue in terms of what is regarded as fair value.
“If it is an independent body that is signing off on these deals, it looks like they are using past deals as a benchmark.
“We have seen City deals before that are higher than we have ever seen before.
“If something like that does transpire, where do you get your benchmark from? It may jeopardise those deals.
“So you wouldn’t be surprised to see a legal challenge from City or Newcastle if it goes this way.”
Commercial revenue streams earned City a remarkable £246.3million in the last recorded financial year.
Their deal with Etihad, which is spread across the City Football Group’s multi-club network, is worth almost £68m per season.
In other news, Plumley suggests Man City chiefs dishing out “stern tellings off” after behind-the-scenes blunder.