Manchester City accuses Premier League of ‘misleading’ claims after legal case

City wrote to the other 19 Premier League clubs and the league late Monday to challenge the league’s interpretation of the outcome, saying its position was that all the associated party transaction (APT) rules were now void.

Representational image: Manchester City launched a legal challenge to the regulations earlier this year on the grounds that it breached competition law. | Photo Credit: Jon Super

Manchester City has accused the Premier League of a “misleading” response following a legal case concerning rules governing commercial deals.

City wrote to the other 19 Premier League clubs and the league late Monday to challenge the league’s interpretation of the outcome, saying its position was that all the associated party transaction (APT) rules were now void.

The Premier League champion launched a legal challenge to the regulations earlier this year on the grounds that it breached competition law.

The APT rules are designed to ensure commercial deals with entities linked to a club’s owners reflect fair market value and are not artificially inflated.

The Premier League champions and the Premier League both claimed victory on Monday after the publication of a decision of an arbitration panel.

The English top flight said in its summary that City were “unsuccessful in the majority of (their) challenge” and that the tribunal considering the case had determined the APT rules were necessary and pursued a legitimate objective.

But City, in its own statement, said the tribunal had declared the APT rules “unlawful” and that the league had abused a dominant position under competition law.

Inaccuracies

The club’s general counsel, Simon Cliff, in his letter to the other clubs, said: “Regrettably, the (Premier League) summary is misleading and contains several inaccuracies”.

“Of even greater concern, however, is the Premier League’s suggestion that new APT rules should be passed within the next 10 days,” he said in an email, according to Britain’s PA news agency and the BBC.

“When the Premier League consulted on and proposed the original APT Rules in late 2021, we pointed out that the process (which took several weeks) was rushed, ill-thought-out and would result in rules that were anti-competitive. The recent award has validated those concerns entirely.

“The tribunal has declared the APT rules to be unlawful. MCFC’s position is that this means that all of the APT rules are void, and have been since 2021.”

Cliff told the other clubs that it was “peculiar” that the league had said in its summary that City was unsuccessful in the majority of its challenge.

“While it is true that MCFC did not succeed with every point that it ran in its legal challenge, the club did not need to prove that the APT rules are unlawful for lots of different reasons,” he wrote.

“It is enough that they are unlawful for one reason. In the event, the tribunal found the APT rules are unlawful for three different sets of reasons.”

The Premier League said changes to the rules arising from the tribunal judgement could be made “quickly and effectively” and is understood to have called a clubs meeting to discuss making those changes.

But Cliff warned against a “kneejerk reaction”, saying it could lead to further legal proceedings.

The Premier League declined to comment but stands by its summary and rejects any assertion that it was either inaccurate or misleading.

The case is separate from an ongoing hearing involving City, with the club fighting 115 charges relating to alleged breaches of Premier League financial rules.