Man City fear devastating new blow in Premier League battle - sources
Manchester City could have suffered a substantial loss in their associated party transactions (APT) case against the Premier League, sources have told Football Insider.
The English champions have taken legal action against the governing body regarding the APT rules currently in place, with the club claiming the regulations are “unlawful”.
After a two-week private arbitration hearing took place in June, The Times reported on 26 September the lawyers acting on behalf of both parties have been notified of the independent panel’s decision.
The newspaper claimed Man City appear to have scored a significant victory in the case after a vote on an amendment to the APT system was dropped from the latest top-flight meeting on Thursday morning.
A relaxation of the rules would mean Premier League clubs could potentially agree sponsorship deals as high as they wanted with no challenge, increasing the amount they could spend under the profit and sustainability rules (PSR).
But sources have told Football Insider the fact there haven't been any wholesale changes yet to the APT rules in the governing body’s handbook suggests the club have likely only secured a minor success at best.
Football Insider revealed on 20 September the Premier League would likely need to amend the APT rules immediately if Man City were wholly successful in their legal battle.
Man City hearing verdict may never be made public
The scheduled vote at the shareholders’ meeting was due to be held on the databank, which was created around the APT system in 2021.
The Premier League board uses the tool to assess fair market value in commercial deals under the APT rules.
Four of Man City’s 10 biggest commercial and sponsorship deals at present are with companies linked to their Abu-Dhabi ownership group, including their stadium naming rights and shirt deal with Etihad Airways.
The Premier League champions have recorded a huge upturn in revenue over the past few years, largely down to their commercial revenue rising from £21million the season before the takeover took place in 2008 to £341.4million in 2022-23.
But sources have told Football Insider the result of the APT case might never be made public and any success for Man City may only be apparent by a change to the Premier League rules.
It isn’t the only legal battle Man City are currently involved in after they were dealt 115 charges by the Premier League in February 2023 for allegedly breaching the financial fair play (FFP) rules over a nine-year period.
The hearing started on 16 September and is scheduled to last 10 weeks due to the complexity of the case.
But finance expert Stefan Borson told Football Insider the matter is unlikely to reach a full conclusion until the end of 2025 if any appeals are launched against the verdict.
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