Manchester City release official statement on Premier League dispute
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Image Credits: Imago ImagesManchester City have released a statement in regard to proceedings with the Premier League and their Associated Party Transaction (APT) rules.
The APT rules, established in December 2021 after Newcastle United’s takeover by Saudi Arabia’s Public Investment Fund, are designed to ensure fair competition in the league.
Essentially, these rules prevent clubs from inflating business deals with companies linked to their owners to artificially boost their financial status.
All such transactions must be independently assessed to determine their “fair market value” (FMV).
Put simply, the APT rules were introduced to stop clubs like Newcastle from copying Manchester City’s approach during their Abu Dhabi takeover, where linked businesses were used in financial dealings.
Manchester City initially challenged the rules, claiming they were anti-competitive and unlawful.
But it appears that the two parties have now come to a conclusion in the case.
The Manchester City statement read:
“The Premier League and Manchester City FC have reached a settlement in relation to the arbitration commenced by the club earlier this year concerning the Premier League’s Associated Party Transaction (APT) Rules and as a result the parties have agreed to terminate the proceedings.”
“This settlement brings an end to the dispute between the parties regarding the APT Rules?
As part of the settlement, Manchester City accepts that the current APT Rules are valid and binding
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“It has been agreed that neither the Premier League nor the club will be making any further comment about the matter.”
Following the club’s statement, it’s important to note that this settlement marks the end of a prolonged and complex dispute over the APT rules.
While Manchester City has accepted the validity of the current regulations, the settlement appears to be a compromise that benefits both parties.
Reports indicate that this agreement could pave the way for Manchester City to proceed with significant commercial deals, including reinstating sponsorship agreements like the Etihad Airways deal, which were previously hindered due to the Premier League’s scrutiny under the old rules.
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