An independent tribunal has ruled that the Premier League’s previous version of the Associated Party Transaction (APT) rules is “void and unenforceable,” siding with Manchester City in a legal dispute that could have significant implications for clubs throughout the division.
The APT rules were introduced in 2021 to prevent clubs from entering inflated sponsorship deals with related parties. Under these regulations, any deal involving a team, player, or manager and a connected entity had to be assessed for “fair market value” to ensure owners were not awarding themselves excessive contracts to circumvent spending restrictions.
Manchester City, which had been blocked from agreeing to a major deal with Etihad Airways in 2023, challenged these rules in June 2024. A preliminary ruling in October saw both sides claim partial victories.
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The tribunal declared three elements of the original APT rules to be “unlawful.” The Premier League dismissed this as a minor issue, quickly staging a vote in November to introduce a revised set of regulations, which passed with a 16-4 majority among the league’s 20 clubs.
Following this decision, the Premier League issued a statement asserting that the old APT rules were no longer valid, but emphasized that this ruling did not affect the current regulations. However, the statement overlooked the fact that clubs were subjected to rules deemed “void and unenforceable” between December 2021 and November 2024.
Any club that was denied a lucrative sponsorship deal during this period could theoretically pursue legal action against the Premier League. Given Manchester City’s history of challenging such decisions, it is likely they could initiate further legal battles related to these past regulations.
It’s important to note that these legal proceedings are separate from the 115 charges brought against Manchester City by the Premier League for alleged financial fair play violations. A verdict on that case is expected in March.
