Man City v Premier League Exclusive: Big update today after new twist emerges
Manchester City are likely to receive support from more clubs in regard to the associated party transaction (APT) rules at the next Premier League meeting, sources have told Football Insider.
Man City took legal action against the governing body regarding the APT rules currently in place at an arbitration hearing in June.
Both sides have claimed a victory in the case after the arbitration panel’s decision was published on 7 October, where two aspects of the rules were deemed to be unlawful.
Everton, Chelsea and Newcastle United acted as witnesses for Man City in the case, while Manchester United, Liverpool, Arsenal, Tottenham, Brighton and West Ham provided evidence for the Premier League.
The governing body had scheduled a meeting of the 20 top-flight clubs for Thursday (17 October) to decide how to respond to the ruling, but it has since been postponed and is now expected to take place next week.
Sources have told Football Insider more clubs are likely to back Man City in a bid to make the APT rules less extreme moving forward.
That could lead to further division among Premier League sides and make any potential votes much closer, with new proposals requiring a two-thirds majority to get the green light.
Man City ruling could have repercussions for Arsenal
It’s so far unclear exactly who came out on top in the APT case after both camps have shared different views on the ruling.
The Premier League welcomed the tribunal’s findings, saying it rejected the majority of Man City’s challenges and “endorsed the overall objectives, framework and decision-making of the APT system”.
But Pep Guardiola’s side have since written to the 19 other top-flight clubs criticising the governing body’s summary of the panel’s ruling, claiming it contains “several inaccuracies”.
As a result of the decision, Man City are now eligible to seek damages on any lost earnings from blocked sponsorship deals.
A significant part of the case was the English champions having a lucrative extension to their deal with Etihad Airways, which is owned by the Abu Dhabi government through the wealth fund ADQ, rejected by the Premier League.
But finance expert Stefan Borson told Football Insider he doesn’t expect Man City to receive huge damages despite successfully proving some of the APT rules are unlawful.
The commission also ruled that shareholder loans shouldn’t be excluded from the APT rules and the Premier League will now integrate the assessment of those loans into the regulations, presenting issues for the likes of Arsenal owner Stan Kroenke.
The north London giants owe the American businessman £259million – the third-highest total in the top flight behind Everton’s £451million and Brighton’s £373million.
Borson told Football Insider Kroenke will likely be forced to change the way he invests in Arsenal following the APT ruling.
In other news, Man City have suffered ‘big’ blow after exit bombshell.
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