The financial regulations that were in place from 2021 to 2024 were ruled invalid and unenforceable, giving Manchester City a significant win in the most recent round of their legal dispute with the Premier League.
The City declared the entire associated party transaction (APT) system void after an independent tribunal found in October that certain aspects of the rules were illegal, particularly the exclusion of shareholder loans from financial calculations.
The APT system was put into place in 2021 after the Saudi Arabian Public Investment Fund acquired Newcastle United. Its purpose is to stop clubs from accepting exorbitant sponsorship agreements with businesses connected to their ownership.
The City’s view that the system is invalid has been maintained for the three years between 2021 and the introduction of new regulations in November 2024. This decision has cast doubt on the entire APT regime and may expose the Premier League to additional legal action from affected clubs.
Man City won legal battle with Premier League
“Manchester City FC initiated an additional arbitration to contest the APT regulations on January 20, 2025,” he stated. As you can see, the new challenge has to do with the APT rule changes that clubs approved in the shareholders’ meeting on November 22, 2024. Manchester City is seeking a determination that the current APT regulations, along with the revisions that clubs accepted in November, are illegal, null, and void.
It is expected that the Premier League will spend an additional £45 million on legal fees this season. City has been defending itself independently against the 130 Premier League charges related to purported financial rule violations. Football’s infamous “trial of the century” is due to conclude in the coming weeks after an independent committee heard testimony on the charges for 12 weeks last year.
In its decision, Cas reversed the suspension, concluding that several of Uefa’s claims were “not established” and that others had passed the five-year “time bar.” However, after concluding that City had not cooperated with investigators, they were nonetheless fined €10 million. The CAS ruling was seen as “a validation of its position” by City, which has consistently denied breaking any financial regulations, whether they are Premier League or UEFA.
