Manchester City have landed an early blow in what is set to be a long and arduous series of legal proceedings over the coming months as they have won a case against the Premier League over their rules around sponsorship and related party transactions.
The current English champions, who have won a record four Premier League titles in a row, launched legal action against the division back in June after claiming that their restrictions around Associated Party Transactions (APT) rules and sponsorships were unfair and unlawful.
Now, as it turns out, an independent panel of three retired judges ultimately concluded that the rules were unlawful and, at least in part, contrary to the Competition Act 1998.
The details of the case are obviously numerous and complex but, in short, it has been found that Man City were unfairly blocked from moving forward with two huge sponsorship deals earlier this year.
BREAKING: Man City has won their legal challenge against the Premier League's Associated Party Transaction rules, which surrounds commercial deals between clubs and their related companies 🚨 pic.twitter.com/ZevrXvOOhd
Although the outcome has been somewhat debated by the league itself, it was decided that the imposed regulations were unfair and “discriminatory in how they operate, because they deliberately excluded shareholder loans.”
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Issuing a statement following the decision, the Premier League said they “welcome the Tribunal’s findings, which endorsed the overall objectives, framework and decision-making of the APT system”, adding that it also “upheld the need for the APT system as a whole and rejected the majority of City’s challenges” while reiterating that the rules are necessary for their “financial controls to be effective”.
They went on to add that “the decision represents an important and detailed assessment of the APT Rules, which ensure clubs are not able to benefit from commercial deals or reductions in costs that are not at Fair Market Value (FMV) by virtue of relationships with Associated Parties.”
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Meanwhile, the City Football Group responded to the news in a series of bullet points, insisting that the “Premier League was found to have abused its dominant position, […] had reached the decisions in a procedurally unfair manner” and that they will now have to “restate the fair market value of two transactions entered into by the Club.”
Safe to say people have noted quite a distinct difference in tone when it comes to statements from the two parties regarding associated parties and their transactions with clubs but, nevertheless, it’s a victory for the Manc club could have a huge knock-on effect regarding how much teams can spend in the future.
Quite a contrast in wording between the statements from Man City (left) and the Premier League (right) on findings related to Associated Party Transaction rules. pic.twitter.com/H3QkHlwMGM
The Premier League have also reassured that two particular aspects of the existing rules that didn’t fully comply with the Competition Act will be rectified promptly and will be “conducting a process that can allow the league and clubs to enact those specific changes quickly and effectively”.
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Not only does this mean that CFG is likely to restart conversations with the two blocked parties – one being the Etihad Group and another with a bank based in Abu Dhabi – but that other clubs could now potentially look into further lucrative sponsorship deals, although ‘fair market value’ will still be assessed.
You can read page 164 of the document which summarises the full Tribunal HERE.
Meanwhile, the still outstanding case against Man City over their 115 charges regarding FFP breaches has now begun, though a decision is still a ways off.
Pep Guardiola says he won’t manage another club after Manchester City
Danny Jones
Pep Guardiola has claimed he won’t manage another team after his tenure at Manchester City is up, so enjoy the ride whilst you can, Blues.
One of the most successful managers in history, Pep Guardiola is undoubtedly one of the greatest managers to have ever lived but it looks like the 53-year-old is now starting to think about life after football – or at least after Man City.
Guardiola recently extended his stay at the Eithad with a new two-year contract but it did look like he was ramping up to leave until the 11th hour and it now seems as though his time at City will be his last in the world of club football.
Pep Guardiola claims that he won't manage another club after Manchester City…
When asked about his future by his fellow compatriot, Pep said: “I’m going to stop. I am not going to join another team, I’m not going to leave to go to another country. I won’t have the energy. For now, I’m still here but to think about starting again, the whole process of training – no, no.”
Energy has been a defining factor for so many managers of late, with long-time rival Jürgen Klopp having departed Liverpool FC as a result of the fatigue caused by the job.
With countless cups, six Premier League titles and a trio of Champions League trophies to his name, Pep has pretty much won everything there is to win, which will no doubt factor into his eventual decision.
That being said, Pep did go on to suggest that however long he stays in the sport after his time in Manchester is all said and done, his next role would likely be in international football as leading a country to major silverware is the one thing he hasn’t achieved just yet.
City have managed to get points back on the board in their last two games, notching a much-needed 3-0 against Nottingham Forest before only managing to scrape a draw against Crystal Palace this past weekend, but with a derby approaching this Sunday, all eyes are on Manchester.
With the title race already looking like a nigh on an insurmountable task given the points they’ve already drooped (even with Liverpool’s recent slip-up), Pep’s stress and energy are already pushed to their limits as it is.
You might only get a couple more years with the tactical genius, City fans, so make the most of it.
You can watch Pep Guardiola’s full interview with Dani García down below – though it is in Spanish so you will need subtitles on:
Manchester City’s alleged charges have been increased to 130
Danny Jones
Manchester City’s hearing over their 115 alleged breaches of FFP (financial fair play) has ended and the outcome is that their charges have now been increased to 130.
Not exactly what Blues will want to hear.
The hearing officially concluded last Friday, 6 December after a 12-week process to determine whether they broke Premier League regulations regarding PSR (profit and sustainability), with accusations initially spanning a nine-year period.
However, rather than making any progress when it comes to clearing their record, it looks as though the opposite has happened.
Man City are now alleged to have committed 130 breaches of Premier League rules with both parties still able to enter an official appeal.
The hearing was held at the International Dispute Resolution Centre near St Paul’s in London, kicking off in September before coming to a close on Friday, 6 December.
Fans will no doubt have been hoping for and maybe even expecting a much more positive update, especially after having been successful in their recent case against the division regarding sponsorship deals and Associated Party Transactions (APT).
As well as the number of alleged breaches having risen to 130, the period of offence is also now said to have been extended, jumping from just under a decade to a total of 14 years.
The Times writer Martyn Ziegler says the club could quietly learn of their fate as soon as next month and even though a final decision still isn’t expected until spring 2025, should either side appeal the final outcome, this will likely draw out proceedings for several more months.
Man City’s charges have gone from 115 to 130. (Credit: The Manc Group)
For context, City still deny all of the claims laid against them, which include failing to provide accurate financial information for as many as nine seasons, full details of players’ wages, hiding the true figure former manager Roberto Mancini was paid for her service, as well as failing to cooperate with the Premier League’s investigation and UEFA’s FFP rules.
The club were slapped with a two-year European ban back in 2020 and have been fined by the European footballing body previously, but that ban was ultimately dropped and even their most recent financial punishment was dropped from £30 million to just £10m – chump change given their spending power.
It still remains unclear what exactly will happen to the reigning English champions if they are found guilty but with Pep Guardiola’s also struggling for form of late, having lost five games in a row for the first time in the Catalan’s career, those inside the Etihad could do with some good news.
The blue moon that has loomed over Manchester in recent years is looking a little lost behind the clouds at the minute.
Danny Jones -
7th October 2024 
