Manchester City have been given a partial victory in their dispute with the Premier League over the league’s rules concerning Associated Party Transactions. The Abu Dhabi-owned club appealed against two 2023 sponsorship deals with First Abu Dhabi Bank and Etihad Aviation Group blocked under the Associated Party Transaction rules which prevent inflated sponsorships from parties affiliated to club owners.
The panel discovered evidence of the APT rules being in violation of British competition law and determined the Premier League’s decisions in these cases “procedurally unfair.” City’s appeal argued that by excluding shareholder loans from APT calculations, competition was being distorted unfairly. The ruling noted that some clubs – among them Arsenal and Brighton – have issued shareholder loans, which under APT controls, are excluded.
However, despite the victory, the Premier League dug its heels in, insisting that the majority of the claims put forward by City were rejected and that the APT rules were essential in upholding financial fair play within the league.
This judgment has coincided with yet another independent investigation into City regarding financial breaches, the verdict of which is similarly expected before the close of the season.
Manchester City, winner of several domestic and international titles since its takeover by Abu Dhabi United Group in 2008, welcomed the ruling as vindication after what the club said were unjust league actions against them.
