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WHAT HAPPENED?
According to Sky Sports, City’s general counsel, Simon Cliff, reached out to all the other top-flight clubs following the tribunal verdict concerning Associated Party Transactions (APT) rules, accusing the Premier League of “misleading” them in its summary of the findings. City believe that the Premier League’s statement misrepresented key aspects of the tribunal’s findings and the proposed changes to APT rules, expected to be implemented within the next 10 days, were being rushed through without adequate consideration.
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GettyTHE BIGGER PICTURE
The tribunal’s findings on Monday offered a complicated resolution. While the Premier League took solace in the fact that its overall APT framework and objectives were upheld, the arbitration panel ruled that both the 2021 rules and their 2023 updates were unlawful due to the exclusion of shareholder loans. This aspect of the ruling is significant, as City argued that the exclusion of these loans unfairly limited their financial flexibility.
WHAT CLIFF WROTE IN THE EMAIL
Cliff wrote in the email: “Regrettably, the summary is misleading and contains several inaccuracies. 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.”
Despite the Premier League’s belief that City failed to win the majority of their legal challenges, Cliff countered this notion in his letter.
“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.”
DID YOU KNOW?
This report further mentions that the Premier League stands by its summary of the tribunal’s findings. They believe that their statement was accurate and reject any suggestions that it was misleading. However, in the Premier League shareholders’ meeting to discuss the next steps after the tribunal verdict on Thursday, there will be no formal voting to amend the current rules.
It’s believed that Chelsea, Newcastle United, and Everton have aligned with City, providing witness testimonies in their favour. Conversely, the likes of Arsenal, Manchester United, Liverpool, West Ham, Brentford, Bournemouth, Fulham, and Wolverhampton Wanderers have sided with the Premier League, submitting written statements in support of the APT system.
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AFPWHAT NEXT?
One of the immediate consequences of the tribunal’s ruling is that the Premier League has been instructed to revisit two deals that City had sought to strike with Etihad Aviation Group and First Abu Dhabi Bank. These deals had previously been blocked under the APT rules. The club can even sue the league arguing that these blocked deals hindered their ability to secure financial agreements that would have significantly boosted the club’s revenue streams.
