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Manchester City landed a win off the field on Monday when an arbitration panel ruled in its favor that the Premier League unfairly blocked a pair of sponsorship deals over concerns they broke associated party transaction (APT) rules, due to their affiliation with Man City’s owner, Abu Dhabi United Group.
The panel ruled that parts of the APT rules violate U.K. competition law in relation to the EPL’s challenge of Man City sponsorship deals in 2023 with First Abu Dhabi Bank (FAB) and Etihad Aviation Group. The panel’s 175-page report also said the Premier League had “unreasonable delays” in decision-making regarding sponsorship agreements with FAB and Emirates Palace.
Man City issued a statement that the Premier League was “found to have abused its dominant position” and that the rules were “discriminatory in how they operate.”
Yet, the Premier League also claimed victory after the ruling as it upheld the general concept of APT and fair market value. Man City had challenged the procedural fairness of the APT rules. FMV concerns in the Premier League were heightened after Saudi Arabia’s Public Investment Fund bought Newcastle in 2021. The EPL’s Financial Fair Play (FFP) rules say that the higher a team’s income, the more it can spend on players.
“The Premier League welcomes the Tribunal’s findings, which endorsed the overall objectives, framework and decision-making of the APT system,” the Premier League said in a statement. “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 Monday ruling is separate from the 115 charges against Manchester City for allegedly breaching the Premier League’s financial competition rules to gain an unfair advantage over rival clubs. That kicked off last month and a ruling is not expected until 2025.
Man City ranked sixth in Sportico’s look at the world’s 50 most valuable soccer teams. The club has won six of the past seven Premier League titles and sits second in the EPL standings behind Liverpool after seven matches.