Man City defeat the Premier League in legal battle over sponsorship deals | OneFootball

Manchester City have landed a massive blow to the Premier League after a landmark legal ruling declared new rules on sponsorship deals unlawful, according to the Daily Mail.

The decision was handed down by a panel of retired judges and could have far-reaching implications for other clubs.

The Abu Dhabi-owned champions are facing 115 charges of breaking Premier League financial rules in a separate case and took the league to court earlier this year over the new sponsorship regulations.

Man City argued that the rules were unfair and discriminatory. The Premier League insists they were designed to prevent clubs from inflating sponsorship deals with companies linked to their owners – see Chelsea’s Infinite Athlete deal.

The Blues were scrambling for sponsors, and a little-known entity came forward with a convenient offer for the west Londoners. However, Chelsea owners Todd Boehly and Clearlake Capital had earlier invested in the company.

How could a newly created company with revenues of just $15.4 million afford to spend a reported £40 million per season on the deal?

Man City’s sponsorship deals have long raised eyebrows, with many pointing out that the club’s Abu Dhabi owners also own these firms. The Premier League attempted to implement new rules to block these deals.

However, City have resisted the Premier League, and the judges agreed, ruling that the rules breached the Competition Act and were “wrong to stop two recent City deals.” The decision could spell trouble for other clubs, including Arsenal, who have relied heavily on shareholder loans.

The verdict could also open the door for City and other clubs to negotiate higher sponsorship deals with related parties. The bombshell findings were delivered in a 175-page report to clubs this afternoon.

The Premier League is now facing a legal battle on multiple fronts. City are expected to seek costs and damages, while the league may have to amend or dump the system entirely. Other clubs could also seek damages if they believe they have been impacted.

The ruling is a major victory for City, who have been embroiled in a long-running legal battle with the Premier League. The decision could have significant implications for the future of English football and the financial sustainability of Premier League clubs.