LONDON: Manchester City have scored one major victory over Premier League sponsorship controls introduced in 2021 and are now probably looking forward to further regulatory success.

Last year an independent arbitration panel found against aspects of the league’s Associated Party Transaction regulations after a complaint by City.

In November the Premier League approved amendments to the rules despite opposition from Newcastle, Nottingham Forest and Aston Villa, as well as City.These rules are ow a subjecvt of a further legal challenge.

The new ruling left open the valdity of the amendments which would appear to be unenforceable. The Premier League – meaning its clubs – could be liable for tens of millions of pounds.

A league statement said: “This decision expressly does not impact the valid operation of the new rules.
“The tribunal has made no findings as to the validity and effectiveness of the new rules. The tribunal states that whether its decision has any benefit to the club, therefore, depends on whether the new APT rules are found to be lawful as part of the second challenge issued by the club last month.

“The League continues to believe that the new APT Rules are valid and enforceable and is pressing for an expeditious resolution of this matter.”

APTs are commercial deals involving clubs and companies to which they have close ties. Restrictions on fair market values (FMVs) were introduced in December 2021, shortly after a Saudi-led takeover of Newcastle.

Last year, a tribunal ruled that low-interest shareholder loans should not be excluded from the scope of the APTs. It also ruled that changes made to toughen up the regulations also breached competition law.

There now appears little to prevent clubs such as Abu Dhabi-backed Manchester City and Saudi-owned Newcastle from signing more lucrative deals with state-linked companies. While such clubs would welcome less restrictions on sponsorships and loans with ‘associated parties’, some rivals fear the league’s competitive balance would be on the line.

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