Manchester City has secured a partial victory against the Premier League after an arbitration panel’s decision regarding sponsorship deals, identified as Associated Party Transactions (APT), which the Abu Dhabi-owned club was previously restricted from completing.
The Premier League interpreted the 175-page redacted ruling, considered by some experts as a significant decision, as endorsing the overall goals and management of the APT system. However, the panel determined that some aspects of the league’s APT regulations were in violation of British competition law and were unlawful, particularly because clubs could not engage in discussions about the data the league would consider.
The tribunal criticized the Premier League’s treatment of two transactions by Manchester City in 2023 involving First Abu Dhabi Bank and Etihad Aviation Group, stating these decisions were made in an “procedurally unfair manner” and need to be overturned. The APT rules were established to ensure fairness in the Premier League by preventing clubs from artificially inflating sponsorship deal values with companies linked to their owners.
In a statement, City declared that they had succeeded in their claim, pointing out that the Premier League was found to have abused its dominant position. The tribunal identified that the APT rules were not only structurally unfair but also discriminatory, as they excluded shareholder loans.
The Premier League noted that a majority of City’s challenges were rejected while asserting that the tribunal acknowledged the necessity of the rules for effective financial controls within the league.
Separately, Manchester City is undergoing an independent hearing concerning alleged breaches of Premier League financial regulations, which started in September, with a ruling anticipated by the end of the current season. Since being acquired by Sheikh Mansour’s Abu Dhabi United Group in 2008, City has secured eight Premier League titles, a Champions League title, three FA Cups, six League Cups, the UEFA Super Cup, and the FIFA Club World Cup.
The Premier League enacted a temporary ban on clubs sponsored by firms linked to their owners following the 2021 sale of Newcastle United to a Saudi Arabian-led consortium. The rules were revised in March after discussions with Premier League clubs and received approval from the FA.
The panel clarified that the APT rules were not specifically aimed at clubs owned by Gulf region companies, but rather intended to apply broadly. According to the APT regulations, each transaction must be submitted to the Premier League Board for a Fair Market Value Assessment.
Witnesses for Manchester City during the arbitration included representatives from Chelsea, Newcastle United, and Everton. The Premier League’s list of witnesses included Brighton & Hove Albion, with written statements from other clubs such as West Ham United, Manchester United, Liverpool, Tottenham Hotspur, and Arsenal supporting the APT rules. Other clubs, including Brentford, Bournemouth, Fulham, and Wolverhampton Wanderers, submitted letters backing the APT rules for the arbitration.
City argued that the omission of shareholder loans from the APT regulations benefited certain clubs and could disrupt market competition, as highlighted by the tribunal’s observations regarding the financing practices of Arsenal and Brighton.