Manchester City took a positive step after the verdict supported City in its case against the Premier League regarding the league’s Associated Party Transaction (APT) rules.
In a 175-page ruling, the independent arbitration panel declared that certain aspects of the rules are unlawful. The ruling also has implications for other Premier League clubs. This relates to sides that have received interest-free loans from their shareholders.
Because some APT rules were declared unlawful, Manchester City is claiming a major victory here. However, the Premier League is also claiming a win. Let’s dive into the case to see who actually came out on top and how the ruling affects other Premier League clubs.
What happened?
Before we can say who won, let’s quickly go over the facts:
After Saudi Arabia’s Public Investment Fund (PIF) purchased Newcastle in 2021, the Premier League approved Associated Party Transaction rules. APTs are transactions between parties with the same owner, such as a hypothetical situation where the PIF sponsors Newcastle.
The Premier League’s APT rules do not ban APTs. Rather, the league just requires APTs to be for a fair market value. Premier League clubs voted to strengthen APT rules in February 2022. Then, Manchester City sued the Premier League in June 2024. It argued the APT rules were unlawful and an example of the Premier League’s “tyranny of the majority.”
An independent arbitration panel reviewed these facts and heard arguments from both sides. In the end, the panel ruled that the overall APT system is sound, with two exceptions.
First, the panel felt that there was too much onus on the clubs to assess the fair market value of APTs.
Second, the panel agreed with Man City about zero-interest shareholder loans. The Premier League argued these loans should not factor in APTs and the Premier League’s Profit and Sustainability Rules (PSR).
The arbitration panel also agreed with Man…
Source link : https://worldsoccertalk.com/manchester-city/manchester-city-claim-victory-after-associated-party-case-verdict/
Author : Cody Aceveda
Publish date : 2024-10-07 19:57:50
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