Man City spark fury among Premier League clubs after £20m legal reveal
Manchester City and the Premier League have sparked fury among other clubs in the top-flight following a major reveal.
Over the past year, Man City have been battling with the Premier League about their Associated Party Transaction (APT) rules.
The case, which is completely separate from the 115 breaches City are charged with, relates to the validity of mega-money sponsorship deals.
Earlier this month, it was revealed that Man City reached a settlement agreement with the Premier League, with legal fees reportedly costing £20million (The Times).
Everton’s former chief Keith Wyness – who served as CEO at Goodison Park between 2004 and 2009 and now runs a football consultancy advising elite clubs – believes that this huge outlay could spark controversy among top-flight clubs.
Man City legal battle reduces Premier League rivals’ revenue
Speaking on the new edition of Football Insider’s Inside Track podcast, Wyness insisted that clubs will be unhappy with the Premier League and Man City for undergoing such an expensive legal battle regarding sponsorships.
The money the Premier League used to fund their APT case against City will reduce the overall revenue that other clubs in the top-flight will receive.
Wyness added that nobody will be happy with the situation and the cost of the legal battle.
He told Football Insider‘s Inside Track podcast: “I think the barristers are speaking to me from Barbados, having got all the money in!
“Yes, that’s the sort of fees we’re talking about. I’ll tell you what, those guys have cottoned onto football as a payday very quickly.
“I wouldn’t be surprised if it’s that sort of £20m level, because what they’ll have done is they’ve had to go back, judge how sponsorships have been treated as fair market value, which means a lot of desk research. They saw this one as a really beautiful little deal to go to.
“So yeah, I’m not surprised at that sort of level of expenditure. But the Premier League’s share of those legal fees are coming out of other clubs’ revenues as well. And nobody’s going to be happy about that.”
Man City set for £600m deal after settlement
Meanwhile, Man City’s settlement agreement with the Premier League has reportedly opened the door for the club to agree a sizeable new sponsorship deal.
That is according to football finance expert Dan Plumley, who claims that the length of the deal would play a significant factor in how much it would ultimately be worth.
The Premier League blocked a deal between City and the state-owned Abu Dhabi airline Etihad in 2023 as it was deemed not to be of fair market value under APT rules.
After the settlement, Man City will be able to push through an improved sponsorship agreement, which could be worth around £600m.
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