Manchester City have issued a statement claiming tribunal victory against Premier League ruling over two sponsorship deals that the league had deemed to be against their rules.
The Premier League had wiped two sponsorship deals off Manchester City’s accounts on the basis that they came from an associated party – that is, a company related to City and/or their owners.
In February, City brought an arbitration claim against the league, arguing that the Premier League’s rules on associated party transactions (APT) were unlawful under UK anti-competition laws, with the tribunal ruling in City’s favour on several key points. Following a recent report that City had won against the Prem in their recent battle, the champions have released their own statement.
Premier League and Manchester City both welcome APT arbitration findings
Suspicions were raised that the tribunal were expected to find against the Premier League two weeks ago after the Premier League put their proposals to amend APT rules on ice.
The rules were first introduced in December 2021 following Newcastle United’s takeover by Saudi Arabia’s Public Investment fund, with other clubs fearful that money might be injected via sponsorship deals to boost revenues.
An amendment to the APT rules was voted in earlier this year, prompting City to bring their challenge through the Premier League’s arbitration procedure. The tribunal has now backed up their stance that some of the ‘fair market value’ rules were unlawful. Those rules required all sponsorship deals from parties with a ‘significant interest’ in the club to be run past the Premier League for approval
Publishing only the final decision provided in the 175-page arbitration findings, City expressed their thanks to the tribunal in a statement on their club website, with the Telegraph writing that Everton, Nottingham Forest, Newcastle and Chelsea were also ‘celebrating’ the ruling.
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Brighton, West Ham, Manchester United, Liverpool, Tottenham and Arsenal all meanwhile appeared as witnesses on behalf of the Premier League.
However, the Premier League say they welcome the tribunal’s findings, writing in a statement: “The Premier League welcomes the Tribunal’s findings, which endorsed the overall objectives, framework and decision-making of the APT system.
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“The Tribunal upheld the need for the APT system as a whole and rejected the majority of Manchester City’s challenges. Moreover, the Tribunal found that the Rules are necessary in order for the League’s financial controls to be effective.
“The decision represents an important and detailed assessment of the APT Rules, which ensure clubs are not able to benefit from commercial deals or reductions in costs that are not at Fair Market Value (FMV) by virtue of relationships with Associated Parties. These Rules were introduced to provide a robust mechanism to safeguard the financial stability, integrity and competitive balance of the League.
“The Tribunal did, however, identify a small number of discrete elements of the Rules which do not, in their current form, comply with competition and public law requirements (more information below). These elements can quickly and effectively be remedied by the League and clubs.
“In the meantime, the Premier League will continue to operate the existing APT system, taking into account the findings made by the Tribunal.”
