Manchester City and the Premier League have both declared partial victories after a legal battle concerning the Premier League’s associated party transaction (APT) rules, which govern the fairness of commercial deals involving entities linked to club owners.
Earlier this year, Manchester City launched legal action, arguing that the APT rules were anti-competitive. These regulations aim to ensure that such deals reflect fair market value, preventing clubs from using inflated transactions with related parties to bypass financial regulations.
The case is separate from another ongoing hearing where Manchester City is facing 115 charges of alleged breaches of the Premier League’s financial rules.
The Premier League stated on Monday that Manchester City had been “unsuccessful in the majority” of their challenges and that the tribunal affirmed the APT rules as necessary for ensuring profitability and sustainability within the league. The tribunal concluded that these rules prevent distortion in competition by ensuring transactions reflect their true market value.
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However, Manchester City offered a different interpretation, claiming the tribunal found the APT rules “unlawful” and accused the Premier League of abusing a dominant position under competition law.
The tribunal ruled in favor of City on two points: that shareholder loans should not be excluded from the APT rules and that certain amendments to the rules made earlier should be set aside. City also claimed the tribunal found the APT rules to be “structurally unfair,” and specific decisions by the Premier League regarding the restatement of the fair market value of two transactions were overturned.
Despite the opposing narratives, both parties secured some favorable outcomes in the complex legal challenge, though the core legitimacy of the APT rules was upheld by the tribunal.
