Verdict in Man City case over Premier League commercial rules

The verdict has been announced in Manchester City's legal case against the Premier League over its associated party transaction (APT) rules.

City had some complaints upheld, with two aspects of the APT rules deemed unlawful by a tribunal.

But the Premier League says the tribunal rejected the majority of Manchester City's challenges and "endorsed the overall objectives, framework and decision-making of the APT system".

APTs are aimed at the value of sponsorship deals with companies linked to clubs' owners.

This case is not directly related to the Premier League disciplinary commission which will hear 115 charges against City for allegedly breaching its financial regulations, some of which date back to 2009.

The tribunal ruled that shareholder loans should not be excluded from the scope of APT rules and that some amendments made in February by the Premier League should not be retained.

In this arbitration process, Chelsea, Newcastle, Nottingham Forest and Everton all acted as witnesses for City.

Witnesses for the Premier League were Manchester United, Liverpool, Arsenal, Tottenham, Brighton and West Ham.

APTs are commercial deals involving clubs and companies to which they have close ties. Restrictions on fair market values (FMVs) were introduced in December 2021, shortly after a Saudi-led takeover of Newcastle.

The Premier League has the right to assess the value of such deals to ensure they have not been inflated, which could give clubs more to spend under current financial rules.

The rules were changed following a vote in February that was not unanimous. Twelve clubs voted to change the rules, with two abstaining and six voting against the changes.

Those rule changes involved amendments to the definition FMV, and shifting the burden of proof to a club to show a transaction is at fair market value.

The BBC reported in June that City were due to face the Premier League in a legal battle.

The Premier League and Manchester City both said they welcomed the tribunal findings announced on Monday, with each side focusing on the elements in their favour.