New Delhi: The Premier League’s previous version of the Associated Party Transaction (APT) rules was deemed “void and unenforceable” by an independent panel, which sided with Manchester City in a legal dispute that could have far-reaching effects on teams throughout the league. The original purpose of the APT regulations was to stop clubs from entering into exorbitant sponsorship deals with “associated parties” in 2021.
Every transaction involving a team, player, or manager and a connected company had to pass a “fair market value” evaluation. Theoretically, this was done to make sure owners weren’t giving themselves excessive contracts in an attempt to increase their income and get around the league’s spending cap. City contested these rules in June 2024 after being prevented from reaching a significant deal with Etihad Airways, based in Abu Dhabi, in 2023. Both sides declared victory in a first ruling that was made public in October.
The Premier League has lost in its legal battle with Manchester City after its sponsorship rules that were enforced from 2021 and 2024 are declared void 🚨😳 pic.twitter.com/oUDyRvChCy
— Mail Sport (@MailSport) February 14, 2025
City take a massive step against Premier League
Three components of the initial draft of the APT regulations were declared “illegal” by the tribunal. The Premier League quickly held a vote to introduce a new set of statutes that were only slightly modified, dismissing that as a minor resolution. All 20 clubs in the division voted on it in November, and it was approved by a majority of 16–4.
Following this most recent ruling, which was still deciding on those previous regulations, England’s top division is also celebrating. “The previous APT rules are no longer in place,” the Premier League said in a formal statement. “This decision expressly does not impact the valid operation of the new rules.”
Manchester City swiftly contested the new APT regulations following the November vote. That matter is presently being decided by a tribunal. The Premier League’s claim that the recent ruling has no immediate impact on the existing rules is accurate, but it ignores the reality that England’s top clubs were subject to rules that are currently legally regarded as “void and unenforceable” between December 2021 and November 2024.
The Premier League may potentially be sued by any team that was passed up for a big sponsorship contract during this nearly three-year period. There is every possibility that Manchester City will fight the divide in court once more because they have had several settlements rejected and have shown themselves to be shamelessly litigious.
Apparently, none of these resolutions had anything to do with the 115 complaints that the Premier League brought against City for repeated violations of financial fair play rules over a number of years. Pep Guardiola has stated that a decision in that massive lawsuit is anticipated sometime in March.
Premier League have officially lost a legal battle against Manchester City over unlawful sponsorship rules. Along side other on-going cases for Manchester City, there will be some relief for the defending champions after all. Football Sports News: Latest Cricket News, Cricket Live Score, Sports Breaking News from Sports Today
