Manchester City has accused the Premier League of being misleading about a recent legal verdict involving rules governing commercial deals, specifically those related to associated party transactions (APT).
Manchester City has accused the Premier League of misleading clubs in the recent Man City Premier League dispute involving a legal verdict on rules governing commercial deals, specifically those related to associated party transactions (APT). In a letter sent to all 19 Premier League clubs, City’s general counsel Simon Cliff argued that the Premier League’s summary of the verdict contains several inaccuracies, fueling a dispute between one of England’s top clubs and the league’s administration.
Background on the Dispute
City’s contention revolves around the associated party transaction (APT) rules, which govern commercial deals with companies linked to club owners, ensuring they are made at fair market value. The dispute arose after an arbitration panel published its findings on Monday, following a legal challenge by City against these APT rules.
Manchester City, owned by the Abu Dhabi-backed City Football Group, had argued that parts of the APT rules were unlawful. The tribunal upheld some of City’s complaints, with two aspects of the rules being deemed unlawful, which led City to declare their legal action as a success. However, the Premier League also claimed a win, noting that most of City’s challenges were rejected and affirming that the APT system’s overall objectives and framework were endorsed.
Man City’s Criticisms
In his letter, Simon Cliff offered what he termed “clarifications” to help other Premier League clubs understand the ruling, disputing several aspects of the Premier League’s summary provided by chief executive Richard Masters. He labeled the summary as “misleading” and argued that it did not correctly reflect the tribunal’s decision.
Cliff argued that the APT rules were declared unlawful and that this rendered all APT regulations void. The Premier League, on the other hand, maintained that only specific elements of the rules were deemed non-compliant with competition and public law requirements, which could be quickly corrected.
According to Cliff, the notion that City was largely unsuccessful in its legal challenge was misleading. While City did not succeed in every point of its argument, they maintained that the ruling rendered the rules void, meaning they could not be enforced.
The Implications for the Premier League
The Premier League now seeks to amend the APT rules within the next fortnight to comply with competition law. This has raised concerns from Manchester City, who believe that rushing into changes without careful reflection could result in further legal proceedings. Cliff highlighted that the Premier League’s decision to engage member clubs in amending these rules when the status of those rules is unclear was “remarkable” and potentially reckless.
City also warned that making these changes hastily could lead to more legal battles, further escalating tensions between the club and the league. The letter also hinted at the possibility that Manchester City might take additional legal actions to seek compensation for any financial losses they believe they have incurred due to the APT rules.
Escalation of the Dispute
This letter marks an escalation in the ongoing Man City Premier League dispute. The language used in the correspondence underscores the bitter nature of the disagreement. With Manchester City having won six of the last seven league titles, this feud comes at a time when the club’s relationship with the competition’s regulators is at its most strained.
The Premier League is confident that it can amend the APT rules to bring them in line with competition law, but City’s warning suggests that any unconsidered changes could lead to prolonged legal issues and even greater costs for the league and its member clubs.
For now, a consultation with all Premier League clubs is underway, with a meeting set for next Thursday to discuss the implications of the tribunal’s decision. This meeting will not result in any immediate vote but is expected to lay the groundwork for future actions.
For more details on this developing story, you can visit the BBC or explore related analysis on Kenkou Land.
