Manchester City’s legal battle with the Premier League continues to rumble on and the reigning champions have seemingly landed the first blow.
After successfully suing the Premier League over commercial regulations, Man City have flexed their muscles as the hearing over 115 charges levelled against them by the Premier League continues.
But why did Man City sue the Premier League and how will this impact their hearing regarding the 115 charges?
What does APT mean?
APT is an initialism that has been thrown around in recent weeks but what does it actually mean?
Well, APT stands for Associated Party Transaction and it refers to a set of rules put in place by the Premier League that governs how commercial deals are struck.
Simply put, the Premier League’s APT rules require any club, player, manager or senior official to notify the Premier League when conducting a deal with an ‘associated party’. These parties are defined as anyone with a significant interest in the club they are dealing with.
The Premier League then ensures any deals struck between, for example, a club and a business are at fair market value and not inflated.
Why are APT rules in place in the Premier League?
The APT rules first came into play following the Saudi-backed takeover of Newcastle United in 2021, with the Premier League and its other clubs concerned about inflated sponsorship deals that could have offered Newcastle a significant financial advantage due to their ownership.
To quote the Premier League: “These rules were introduced with the aim of safeguarding the financial stability, integrity, and competitive balance of the league.
“APT rules are intended to strike a fair, reasonable and proportionate balance between competing interests for the long-term benefit of the league, its clubs and other stakeholders in our game, including fans, by encouraging a competitive level playing field that is underpinned by financial responsibility.”
The rules were first agreed upon in December 2021 and were then amended in March 2024.
Why have Man City sued the Premier League?
Man City sued the Premier League because they feel they have been disadvantaged by APT rules introduced several years ago. They want to be able to compete with the likes of Chelsea, Arsenal, Liverpool and Manchester United from a commercial standpoint but ATP rules have limited their ability to rival the aforementioned sides off the pitch.
Man City were partially successful in suing the Premier League over their APT rules as a tribunal agreed that several aspects of these commercial regulations were indeed unlawful. Naturally, the club have viewed this as a significant victory.
However, the tribunal “endorsed the overall objectives, framework and decision-making of the APT system”. As a result, the Premier League also view this as a victory considering it was only ruled that they need to amend the current rules in place.
What impact will this have on Man City’s 115 charges?
The decision over ATP rules could have a significant impact on the hearing regarding Man City’s 115 charges. The club have undermined the Premier League’s authority when it comes to their financial regulations and decision-making.
Man City certainly view this as a major victory, stating: “The club has succeeded with its claim: the Associated Party Transaction (APT) rules have been found to be unlawful and the Premier League’s decisions on two specific MCFC sponsorship transactions have been set aside.
“The tribunal found that both the original APT rules and the current, (amended) APT Rules violate UK competition law and violate the requirements of procedural fairness. The Premier League was found to have abused its dominant position.”
The hearing over the 115 charges is expected to conclude in late November but a verdict won’t be announced until the beginning of 2025.
