Manchester City recently emerged victorious against the Premier League over contentious sponsorship rules. This landmark ruling, delivered on October 7th, 2024, by a panel of three retired judges, found certain aspects of the Associated Party Transactions (APT) regulations to be unlawful.
These rules were initially designed to prevent clubs from inflating their revenues through deals with companies linked to their owners, a measure introduced following the Saudi takeover of Newcastle United.
The case saw eight Premier League clubs, including Arsenal, Manchester United, Liverpool, Wolves, West Ham, Brentford, Bournemouth, and Fulham, providing evidence against Manchester City. These clubs supported the Premier League's stance, arguing that the APT rules were necessary to maintain financial fairness within the league.
However, the tribunal ruled that the Premier League's rejection of Manchester City's proposed sponsorship deals with Etihad and an Abu Dhabi-based bank was procedurally unfair and breached the Competition Act.
The verdict is seen as a major setback for the Premier League, particularly for its chief executive Richard Masters, as it challenges the league's future financial governance framework. The ruling could potentially pave the way for clubs with wealthy owners to secure more lucrative sponsorship deals, thereby altering the competitive balance within the league.
Manchester City, owned by a firm linked to Abu Dhabi's ruling family, had been facing 115 charges of breaching Premier League financial rules in a separate case. Despite this ongoing legal challenge, the club's victory in the sponsorship rule dispute marks a pivotal triumph.
In response to the ruling, Manchester City expressed gratitude towards the Arbitral Tribunal and welcomed the findings, which they believe set a clear precedent against what they deemed discriminatory practices.
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