ThewolfManchester City have claimed a major victory in their legal battle with the Premier League over rules prohibiting associated party transactions (APT)
Manchester City have reportedly struck a significant blow against the Premier League in a dispute over associated party transactions (APT), with rules that sought to prohibit them being declared unlawful. Seven top-flight clubs provided evidence supporting the league’s stance, as reported by The Times.
City argued that they were prevented from finalising two major agreements due to regulations set in 2021, which were later found to be illegal by a tribunal of three retired judges. This decision came after the panel considered that the rules failed to account for interest-free loans given by shareholders to clubs.
Everton had £451 million in shareholder loans at the end of the 2022-23 season according to the Times, which would have to be included in PSR calculations moving forward.
Manchester City now has the potential to secure larger commercial agreements with partners like Etihad, and theoretically, Newcastle United could also establish deals with Saudi partners. The APT rules were introduced following a takeover to prevent clubs from artificially increasing the value of deals with partner companies to bypass PSR.
City successfully contended that these rules were unlawful, given that other clubs, including Liverpool, Arsenal, Chelsea, Everton, and many others, have taken interest-free loans from their shareholders.
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