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Manchester City seem to be embroiled in a war of words with the Premier League following their success in a case against Associated Party Transaction (APT) rules. Both City and the Premier League appeared to claim victory in their statements after the ruling was published on Monday.
The rules were deemed as ‘unlawful’ by the panel of three retired judges. However, in a statement, the Premier League wrote: "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.
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"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 (more information below). These elements can quickly and effectively be remedied by the League and clubs.”
There has been a lot of talk around the next steps, with the fallout from the verdict continuing. With that in mind, MEN Sport have taken a look at some of the latest reports around the situation.
Man City ‘letter’
After Monday's ruling, the Times claim that City’s general counsel, Simon Cliff, has written a letter to all of their Premier League rivals as well as the league itself, where there was a ‘detailed dismantling’ of the Premier League statement. The report says that Cliff’s letter tells clubs that the Premier League’s “summary is misleading and contains several inaccuracies.”
It is added that Cliff writes: “When the PL 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 (conclusion of the panel) has validated those concerns entirely.
“The tribunal has declared the APT rules to be unlawful. MCFC’s position is that this means all of the APT rules are void, and have been since 2021.
“In recent correspondence, the PL agreed with MCFC that this is an issue which will need to be resolved by the tribunal. It is therefore remarkable that the PL is now seeking to involve the member clubs in a process to amend the APT rules at a time when it does not even know the status of those rules.”
An emergency meeting between Premier League clubs is due to take place next week. It is suggested that the league will be looking to make some quick amendments to the rules.
Premier League response
Sky Sports report that the Premier League are standing by its summary of the verdict and reject any assertion that it was inaccurate or misleading. It has however refused to comment on the situation.
It is added that sources close to the league say that next week’s meeting will include no votes on any amendments to the rules. The meeting will simply be a chance to discuss the rules between all parties.
‘Disastrous’ verdict
This is of course, all on the backdrop on City’s ongoing case as they defend themselves against 115 charges against Premier League’s financial rules. The hearing is currently taking place and is separate to that surrounding the APT rules.
Former City financial advisor Stefan Borson has said that the outcome of the 115 charges against the club will be ‘disastrous’ for the Premier League, whatever the outcome.
“If they lose again it is going to be a big problem for them,” he told talkSPORT. “If they were to lose that one it would be monumental.
“If you go round making that type of allegation over a very long period against the club that has won the majority of the titles in the last ten years. If you lose that case after 10 weeks of trial it is a disastrous outcome for you.
“Let's say they (the Premier League) win the City case it is still a disastrous situation, they are boxed in here either way and that is the challenge they have got.”
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