Manchester City challenged the Premier League in court over its APT rules, introduced after the Saudi-led takeover of Newcastle, last year, with a panel declaring that the rules ‘as a whole are void and unenforceable’.
The Premier League has suffered a significant setback in their legal battle with Manchester City after a tribunal declared its rules on commercial deals between 2021 and 2024 – before their amendment last November – “void and unenforceable”.
The APT rules were introduced by the Premier League after the Saudi-led takeover of Newcastle to ensure deals done between clubs and entities linked to their owners were completed for fair market value. However, the four-time Premier League champions took matters to court in 2023 after their proposed deals with Etihad Airways and First Abu Dhabi Bank – both from the United Arab Emirates – were rejected.
City claimed that the Premier League’s Associated Party Transaction (APT) regulations were illegal, with a panel agreeing with the club last September as three elements were deemed unlawful. The Premier League felt that the rules only required some tweaks to be amended after 16 of the 20 clubs in the league voted in support of changing them in November.
But in its concluding remarks, the panel stated: “The three respects in which the APT rules and amended APT rules were unlawful cannot be severed with the result that the APT rules as a whole are void and unenforceable.” City now seek a £20m compensation while clubs have the chance to sue the league for any deals that were denied or reduced in value under the system between December 2021 and November 2024.
The Citizens also challenged the arrangements made in November 2024 in court, with the same panel deciding on whether they are ‘fair and valid’, as serious ramifications are at stake for the Premier League. The trial is not linked to City’s 115 charges by the Premier League, over alleged breaches of financial rules. While that case has been heard, a verdict is expected before the end of this season.