Man City secure partial victory in legal dispute with Premier League

Manchester City have secured a partial victory in its legal dispute with the Premier League over commercial regulations.

An independent tribunal ruled that some aspects of the Premier League’s Associated Party Transactions (APTs) rules violated competition law in two significant areas.

Despite the tribunal’s ruling, the Premier League insisted that the judgement “endorsed the overall objectives, framework, and decision-making of the APT system.”

Man City’s legal challenge targeted 25 regulations related to APTs and the rejection of two major sponsorship deals. The tribunal agreed with City’s argument that shareholder loans should not be excluded from APT rules. It also found that an updated version of the rule, introduced in February 2024, was unlawful due to changes in wording concerning “fair market value.”

Additionally, the tribunal ruled that the Premier League unfairly blocked two of City’s sponsorship deals—one with First Abu Dhabi Bank and another with Etihad Aviation Group—because the league did not provide sufficient information for City to respond. The Premier League was also criticized for delaying its decision on these deals, taking several months longer than appropriate.

While these rulings favoured City, many of the club’s other claims were dismissed.

In response to the 175-page judgement, the Premier League emphasized that City was “unsuccessful in the majority” of its challenge. The league expressed satisfaction with the tribunal’s endorsement of the broader objectives of the APT system, noting that only a few specific rule elements breached competition and public law.

City, however, welcomed the ruling, stating that it confirmed the Premier League had “abused its dominant position” in handling APT rules.

Both parties are expected to engage in discussions to address the issues highlighted by the tribunal, which could have significant implications for the future of the Premier League’s financial regulations.