Man City claim seismic win in first legal battle with Premier League | OneFootball

Landmark decision likely to have major ramifications for English football

Manchester City are claiming victory in their legal battle with the Premier League over associated-party transaction (APT) rules.

City say two deals with Etihad and First Abu Dhabi Bank have been deemed to have been “unfairly blocked”, which will spark concern among rival clubs.

Crucially, the Premier League said the tribunal had determined the APT rules were necessary and pursued a legitimate objective.

The case is not directly related to City's 115 charges for alleged breaches of the Premier League's financial rules.

City launched a legal action against APT rules this year on the grounds they were anti-competitive. APT rules are designed to ensure commercial deals with entities linked to a club's owners are done for fair market value.

City said in a statement: “The Premier League was found to have abused its dominant position.”

Both parties released the 175-page judgment on Monday, but came to very different conclusions about what it meant.

The panel did find it was anti-competitive to exclude shareholder loans from APT rules and also called for changes to the rules which were adopted earlier this year to be amended.

However, the Premier League said the tribunal had supported the legitimacy of the rules, and said it had found them essential to make the profitability and sustainability regulations (PSR) effective

The Premier League said the panel had agreed with it that if a transaction is evidently not at fair market value, that would distort competition within the league.

The Premier League also said the panel had rejected City's argument that the purpose of the rules was to discriminate against clubs with ownership from the Gulf region.

City claim the panel found the APT rules were "structurally unfair" and that the panel had set aside specific decisions of the Premier League to restate the fair market value of two transactions entered into by the club.

City said the panel had found the Premier League had reached those decisions in a "procedurally unfair" manner and said there was an unreasonable delay in the league's fair market value assessment of two of their sponsorship transactions.

Leading sports lawyer Nick De Marco KC posted on X: "As is often the case with lawyers, both sides have declared victory. The truth is somewhere in between, with each side winning on different issues."

City also suggested they could look to seek damages based on the panel's decision.

The Premier League has called a meeting of its clubs for next week to discuss the panel ruling.

It is understood the league has told the impact of any change to the rules to include shareholder loans will be minimal in reality.