Man City Wins Tribunal Ruling on Premier League Sponsorship Rules
The ruling could lead to compensation claims for deals that were blocked or reduced in value during the three-year period, and the Premier League's ability to prevent the wealthiest clubs from inflating the value of deals to spend more on players and comply with Profit and Sustainability rules (PSR) may be impacted.
A UK tribunal has ruled that the Premier League's rules governing sponsorship deals from 2021 to 2024 are "void and unenforceable", in a significant victory for Manchester City, which had challenged the league's Associated Party Transaction (APT) regulations.
The tribunal found that the rules were unlawful in three respects, making them unenforceable. This ruling does not impact the new APT rules introduced in November, but it could lead to clubs seeking compensation for undervalued or rejected deals under the old rules. The Premier League claims the ruling does not affect the "valid operation" of the new rules, which are still in full force.
The Premier League's governance and ability to uphold its rulebook are under scrutiny, and the ruling could have significant implications for the league's future direction. The rules, known as Associated Party Transactions (APT), were introduced after the Saudi-led takeover of Newcastle United. Manchester City challenged the rules, claiming they were unlawful and unfair, and the tribunal agreed, ruling that the APT regulations were unlawful in their entirety.
The outcome of this case could have significant implications for the Premier League's regulatory powers and the financial dealings of its clubs. The case is part of a broader dispute between City and the Premier League, with a verdict due imminently on over 100 alleged breaches of financial rules dating back to 2009. The Premier League may also have to foot the bill for City's legal costs, which could total around £20m.
