Abhay Singh
On Monday, Manchester City secured a significant win in their battle with the Premier League following a ruling by an arbitration panel regarding the club’s purported breaches of the English league’s regulations on Associated Party Transactions (APT).
The decision marks a pivotal moment in the ongoing saga surrounding the Abu Dhabi-owned team, shedding light on the intricacies of financial dealings in football and the measures put in place to uphold fairness and transparency within the league.
APT rules were designed to maintain the Premier League’s competitiveness
The Premier League offered its own interpretation of what some pundits regarded as a historic decision, claiming that the panel’s 165-page redacted decision supported the APT system’s overarching goals and decision-making process.
However, the panel determined that several APT regulations of the league were illegal because of teams’ inability to comment on the kinds of data the league would consider, as well as breaches of British competition law.
The tribunal decided that the Premier League’s decision regarding two transactions in 2023—with First Abu Dhabi Bank and Etihad Aviation Group—must be annulled because it was “reached in a procedurally unfair manner.”
The purpose of the APT regulations was to keep the Premier League competitive by prohibiting clubs from inflating the value of sponsorship agreements with businesses connected to their owners.
In a statement, City said that it had been successful in proving its claim and that, among other things, the Premier League had misused its position of dominance.
City stated “The Tribunal has determined both that the rules are structurally unfair and that the Premier League was specifically unfair in how it applied those rules to the Club in practice. The rules were found to be discriminatory in how they operate because they deliberately excluded shareholder loans,”
Most of City’s challenges, according to the Premier League, have been turned down.
It added “Moreover, the Tribunal found that the rules are necessary in order for the League’s financial controls to be effective,”
Reigning champion City is also involved in a separate independent hearing
A decision is anticipated before the current season ends. Reigning champion City is also a party to an independent hearing that started in September regarding the club’s purported violations of Premier League financial rules.
Since being acquired by Sheikh Mansour’s Abu Dhabi United Group in 2008, the team has won eight Premier League titles, the Champions League, three FA Cups, six League Cups, the UEFA Super Cup, and the FIFA Club World Cup.
After Newcastle United was sold to a group led by Saudi Arabia’s Public Investment Fund (PIF) in 2021, the Premier League imposed a temporary restriction on clubs receiving sponsorship from companies associated with their owners.
Following discussions with Premier League teams, the FA approved amendments to the rules in March. Each APT must be filed in accordance with the guidelines to the Premier League Board, which will carry out a Fair Market Value Assessment.
According to the verdict, City’s adversaries Chelsea, Newcastle United, Nottingham Forest, and Everton served as witnesses throughout the arbitration procedure. West Ham United, Brighton & Hove Albion, Tottenham Hotspur, Manchester United, Liverpool, and Arsenal were among the Premier League’s witnesses.
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