Manchester City and Premier League both claiming victory in legal case over Associated Party Transactions (APTs); Chelsea, Newcastle and Everton called as witnesses for City, while Arsenal, Man Utd, Liverpool and others provided statements for Premier League
Tuesday 8 October 2024 19:01, UK
Manchester City's general counsel Simon Cliff has sent a letter to the other 19 Premier League clubs accusing the league of "misleading" them over Monday's ruling on Associated Party Transactions (APT) rules.
Sky Sports News understands the Premier League rejects the notion in Cliff's letter, which claims "several inaccuracies" exist in the Premier League's summary of the tribunal's findings.
This summary was emailed around to clubs on Monday following the verdict and Cliff responded by attempting to "clarify" several points.
"Regrettably, the summary is misleading and contains several inaccuracies," Cliff wrote in the email, seen by Sky Sports News.
"Of even greater concern, however, is the Premier League's suggestion that new APT rules should be passed within the next 10 days.
"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."
Both City and the Premier League claimed partial victories following the tribunal's findings on Monday, with the league believing the three judges to have "endorsed the overall objectives, framework and decision-making of the APT system".
The arbitration panel found the 2021 rules and their 2023 updates to be unlawful because they excluded shareholder loans - but the Premier League believed City had been unsuccessful in the majority of their challenge.
Cliff told clubs in his letter that it was "peculiar" that the league had said this in its summary. "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," Cliff said.
"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 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.
However, Cliff said this was not the time for a "kneejerk reaction" in revising the rules, which he warned could lead to further legal proceedings. He said there needed to be "careful reflection" on how to proceed.
The Premier League declined to comment but stands by its summary, and rejects any assertion that it was either inaccurate or misleading.
Sources close to the league also stressed that the clubs meeting called for next Thursday will simply be an opportunity to discuss the rules, and that no votes on amendments to the rules will be taken.
Sky Sports News' chief reporter Kaveh Solhekol:
What impact will this have on Man City's 115 charges?
You could say this is a very significant victory for Man City because in central London right now the hearing is going on into the alleged breach of 115 of the Premier League's financial rules by Man City.
City have, by securing this victory, undermined the Premier League's financial rules.
They have got people thinking, 'These financial rules aren't worth the paper they're written on, they've been written up too quickly'.
They've challenged them and won, just like Leicester City, who won a legal challenge against the Premier League's financial rules a couple of weeks ago.
I wouldn't downplay how significant the decision is. I think this will have big, big implications for the Premier League and their financial rules.
So Man City see this as a big win?
Man City are saying they've won and this is a significant victory for them.
They are saying they've succeeded in proving the rules are unlawful, violated UK competition law and procedural fairness and the Premier League abused its dominant position and the rules were discriminatory in how they operate.
But the Premier League also see success for themselves in this judgement?
Overall the tribunal has endorsed the objectives of the ATP rules; the framework and decision-making process behind them.
The Premier League would say, 'The tribunal have found a few small changes we need to make - we'll very quickly make those changes'.
They would say the focus should be on the fact the rules are staying.
Whose side are the other clubs on?
It will be very intriguing to see what the atmosphere is like at the next Premier League shareholders' meeting because we found out some clubs supported Man City and some supported the Premier League.
Chelsea, Newcastle and Everton were witnesses for Man City.
Arsenal, Man Utd, Liverpool, West Ham, Brentford, Bournemouth, Fulham and Wolves provided written statements to support the Premier League's position.
This is a divisive issue.
What happens next?
There were two deals Man City wanted to do with Etihad Aviation Group and First Abu Dhabi Bank which were blocked. The tribunal has said the Premier League needs to look at those deals again.
Looking ahead. City could sue the Premier League and try to get compensation and say the past deals they've blocked have prevented City from bringing more money into the club.
It will then be intriguing to see the implications for the case of the 115 alleged charges…
