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Liverpool have reportedly supported the Premier League in their fight against Manchester City in the Associated Party Transactions (APT) case with the top-flight claiming victory

Liverpool were one of the clubs to support the Premier League in the APT case against Man City(Image: CameraSport via Getty Images)

Liverpool were one of the eight clubs to support the Premier League in the Associated Party Transactions (APT) case against Manchester City. A report by The Times claims the Reds submitted evidence that supported the Premier League's position, though an independent panel found that the League's APT rules were unlawful following complaints from City.

In addition to Liverpool, Manchester United, Arsenal, West Ham, Brentford, Bournemouth, Fulham and Wolves also backed the top-flight. It's said that the evidence of the clubs was that the Profit and Sustainability Rules (PSR) were not effective because it relied on clubs to make self-declarations in their annual accounts.

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However, City's huge legal battle win over the Premier League, could have a significant impact moving forward, as the ruling allows clubs to strike significantly higher sponsorship agreements with associated parties than previously allowed. It has been deemed that the rules were unlawful because they did not take into consideration interest-free loans from shareholders to clubs.

As a result, City and other clubs could look to pursue compensation and costs from the Premier League for abusing its position - should they believe they have been impacted.

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The Premier League released a statement claiming victory: "The decision of an Arbitration Panel has been published following a legal challenge by Manchester City FC against the Premier League’s Associated Party Transaction (APT) Rules. The Premier League welcomes the Tribunal’s findings, which endorsed the overall objectives, framework and decision-making of the APT system.

"The Tribunal upheld the need for the APT system as a whole and rejected the majority of Manchester City’s challenges. Moreover, the Tribunal found that the Rules are necessary in order for the League’s financial controls to be effective. 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.

"These Rules were introduced to provide a robust mechanism to safeguard the financial stability, integrity and competitive balance of the League. The Tribunal did, however, identify a small number of discrete elements of the Rules which do not, in their current form, comply with competition and public law requirements.

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"These elements can quickly and effectively be remedied by the League and clubs. In the meantime, the Premier League will continue to operate the existing APT system, taking into account the findings made by the Tribunal. While the Arbitration process is confidential, the Premier League and the Club have agreed to make public a redacted copy of the decision, withholding only confidential and commercially sensitive information."