Premier League Loses APT Ruling: What It Means for Manchester City and Other Clubs

Manchester City have won a significant legal battle against the Premier League regarding Associated Party Transactions (APT) rules, with the tribunal ruling the regulations “unlawful” and “unenforceable.” This decision could have major financial and legal implications for City, other clubs, and the Premier League itself.

Original Source
The Athletic
Written by
Craig 'Tosh' McKinnon
17 Feb
7:13
Business

The1905.Club Summary

Manchester City’s legal challenge against the Premier League’s APT rules has resulted in a major victory, as the tribunal found that the rules in place between December 2021 and November 2024 were invalid. These rules were introduced to prevent clubs with wealthy owners—like City and Newcastle United—from inflating sponsorship revenues by signing deals with companies linked to their ownership.

City argued that the rules were anti-competitive, and the tribunal agreed, declaring them void. This means that clubs whose commercial deals were blocked or adjusted under these regulations may now seek compensation from the Premier League.

Tom Dulat/Getty Images for Premier League

However, a second legal case is ongoing, as the Premier League introduced new APT rules in November 2024. These remain in effect for now, but City are challenging them as well, meaning further legal battles could follow.

Key Points

Impact on Manchester City:

  • Significant Legal Win: The tribunal ruled in City's favour, declaring the old APT rules unlawful.
  • Potential Compensation: City may seek compensation for sponsorship deals blocked under the previous rules.
  • Stronger Position for Future Legal Cases: City are now challenging the new APT rules introduced in November 2024.

Implications for Other Clubs:

  • Possible Compensation Claims: Clubs that had deals blocked or adjusted (including Newcastle) may also sue the Premier League.
  • Potential Financial Boost for Clubs: If the new APT rules are overturned, clubs could sign more lucrative commercial deals with associated parties.

Impact on the Premier League:

  • Legal and Financial Repercussions: The league may have to pay compensation to clubs affected by the old APT rules.
  • Club Frustrations Growing: Some clubs may call for Premier League CEO Richard Masters to step down over the handling of these regulations.
  • New APT Rules Still in Effect (For Now): Clubs must still comply with the updated rules, but their legality is being challenged.

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Photo Credit
Michael Regan/Getty Images
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Written by 
Craig 'Tosh' McKinnon
Co-founder of The1905Club. A life long Chelsea fan and season ticket holder for over twenty years. Now residing in Poland, this doesn't stop Tosh from watching every minute of every game.
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