By The majority of Premier League clubs are reportedly in favor of maintaining the Associated Party Transaction (APT) rules, despite Manchester City’s legal challenge. These regulations, established in 2021, require that all sponsorship deals linked to club owners be independently verified to ensure they reflect ‘fair market value’.
Manchester City has initiated legal proceedings against the Premier League, arguing that the APT rules are in violation of UK business law. The club is seeking to abolish these rules, which pertain to commercial and sponsorship agreements involving entities related to club owners. Additionally, Manchester City is demanding substantial compensation, claiming that the rules have negatively impacted their revenue and business operations.
Other clubs, however, are concerned that without these restrictions, there would be no cap on the investment a wealthy owner could make, potentially leading to unchecked spending on player transfers and wages. This scenario is likened to the “Wild West” by one executive, indicating a fear of unregulated financial competition.
The Premier League is prepared to robustly defend its APT rules, and it is unlikely that this issue will be formally addressed at the upcoming Premier League Annual General Meeting in Harrogate. Nonetheless, it is expected to be a subject of intense informal discussion among club executives.
Under normal circumstances, a rule change in the Premier League handbook requires the support of at least 14 clubs. However, if Manchester City’s legal action proves successful and the APT rule is deemed unlawful, it could be annulled without the need for a majority vote.
Manchester City’s legal stance criticizes the current opposition as a ‘tyranny of the majority’, which they claim contradicts business law principles. The case is set to be adjudicated by a private tribunal over a two-week period starting on Monday. Both the Premier League and Manchester City have refrained from public comment on the matter.
