EPL Index
·21 November 2024
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·21 November 2024
The ongoing legal clash between Manchester City and the Premier League is not just another footballing feud; it’s a battle that threatens to redefine the financial and regulatory fabric of England’s top division. With 115 charges looming over City and a contentious vote on Associated Party Transactions (APT) regulations, this isn’t just about one club’s fight—it’s a story that could echo across the league. Here’s an in-depth analysis of what’s at stake, the timeline so far, and why every fan, not just City supporters, should care.
Associated Party Transactions, or APTs, are deals between clubs and entities with shared ownership. The Premier League’s rules require such transactions to be assessed against “fair market value” to prevent financial manipulation.
For Manchester City, whose sponsorship network includes partners tied to the City Football Group (CFG), these regulations have always carried higher stakes. When Newcastle United was acquired by Saudi Arabia’s Public Investment Fund, other clubs voted to tighten these rules further, viewing the move as necessary to maintain competitive integrity. City, however, argued that the tightened rules were anti-competitive and unlawful, sparking a legal challenge.
This summer, an independent tribunal sided with City on three key points, declaring aspects of the Premier League’s APT regulations unlawful. Yet, the broader framework was upheld, leaving room for interpretation and conflict.
In October, the tribunal delivered its verdict, finding that:
While City hailed the ruling as a vindication, the Premier League emphasised that the overall APT system remained intact. However, the decision laid bare significant fractures in the regulatory framework, setting the stage for further disputes.
The Premier League is now seeking to revise its APT rules through a series of small amendments. Using a legal concept known as the “blue-pencil test,” they aim to surgically remove the problematic clauses while retaining the broader framework.
But Manchester City, alongside Aston Villa, are pushing back. They argue that systemic reform—not quick fixes—is required. City has also threatened litigation if Friday’s vote proceeds without awaiting further tribunal guidance. In a letter seen by The Athletic, City’s general counsel Simon Cliff wrote:
“Common sense dictates that the Premier League should not rush into passing amendments—particularly ones which entail material legal risk—until (it) knows the outcome from the tribunal.”
Aston Villa’s owner, Nassef Sawiris, echoed this sentiment, calling for a 90-day delay to ensure unanimous support and prevent further legal wrangling.
The implications of this battle extend far beyond Manchester City. Arsenal, Everton, and Brighton are among the clubs whose financial strategies—specifically the use of shareholder loans—could face scrutiny. If Friday’s vote passes, these clubs may need to restructure their finances, potentially impacting their ability to compete in the January transfer window.
Meanwhile, Newcastle United and other state-owned clubs are closely watching the outcome, given their reliance on related-party transactions to bolster revenues. A rushed vote could alienate these clubs, deepening divisions within the league.
The Premier League itself faces a dilemma. If the amendments are passed and later deemed unlawful, it risks further reputational damage and legal costs. If the vote fails, it must brace for months of regulatory uncertainty.
For fans, this saga isn’t just about legal jargon or boardroom politics—it’s about the future of the Premier League.
As reported by The Athletic one club executive said:
“This is bigger than City versus the Premier League. It’s about how the league sees its future—as a competitive sporting product or a financial free-for-all.”
The vote’s result could fall either way, with club insiders predicting a close count. For the Premier League to pass its amendments, 14 clubs must vote in favour. A failure to secure this majority would delay any resolution until at least February, giving City more time to argue for broader reform.
If the amendments pass, expect City to retaliate with further legal challenges. Their lawyers have already signalled that even revised rules could be deemed unlawful depending on the tribunal’s final ruling on the blue-pencil approach.
Should the Premier League delay the vote, it would buy time but also leave the league in regulatory limbo—a situation that benefits no one.
This situation is deeply concerning for City supporters. The club has consistently been portrayed as an outsider in the Premier League’s power dynamics, with many fans believing that rival clubs and the league itself have targeted City unfairly.
The APT rules have always felt like a mechanism to curb City’s success rather than ensure fairness. Fans see the tribunal’s findings as proof that these regulations are flawed, yet the Premier League appears unwilling to engage in meaningful reform. Instead, it seems intent on pushing through amendments that preserve its own authority at City’s expense.
City’s stance on transparency and systemic reform resonates with supporters who value fairness over expediency. Delaying the vote to ensure robust, lawful rules isn’t just logical—it’s essential. A rushed decision risks further alienating clubs and fans alike, deepening mistrust in a league already criticised for its governance.
The broader worry is that this battle isn’t just about APTs—it’s about how the Premier League treats its most successful club. The message being sent is clear: dominance will be scrutinised, and innovation may be stifled if it threatens the status quo. For City fans, that’s a worrying precedent in a league that prides itself on competition and evolution.