Manchester City secure major legal victory over Premier League as rules deemed ‘null and void’ and ‘unlawful’ | OneFootball

The Premier League has succumbed to a significant defeat against Manchester City over its sponsorship rules following an independent panel’s verdict, it has been revealed.

The development comes after City took the Premier League to court having seen proposed sponsorship deals with Etihad Airways and First Abu Dhabi Bank blocked in 2023, with the club claiming that the division’s Associated Party Transaction (APT) rules were unlawful.

Fast forward to September of 2024 and a tribunal agreed with Manchester City, pointing out three elements of the matter that they also deemed unlawful, including the fact that shareholder loans were not subject to fair market value testing within APT rules.

Further developments then saw City accuse the Premier League of attempting to mislead its member clubs on the situation after the division believed that amendments could be made to satisfy teams, with City raising the threat of further legal action in the event of such changes.

Now, a verdict has further underlined Manchester City’s position on the matter in what is being viewed as a seismic victory for the league’s reigning champions and winners of the competition in all of the last four seasons.

According to MailSport’s Mike Keegan, the Premier League has suffered a ‘significant setback’ as a tribunal deemed sponsorship rules ‘null and void’, with an independent panel siding with Manchester City and deeming Associated Party Transaction regulations entirely unlawful.

The verdict is said to also mean that any deals rejected or reduced in value under the system, which operated between December 2021 and November 2024, could now be subject to ‘hefty compensation claims’.

Additionally, should a club believe its competitive performance was harmed by a decision made under the previous APT system, it could now sue, according to the report.

The panel is understood to have featured legal experts Christopher Vajda KC, Lord Dyson and Sir Nigel Teare.

Further reporting from The Times’ Matt Lawton states that the verdict will also be viewed by Manchester City’s legal team – led by Lord Pannick KC and Paul Harris KC with Freshfields – as a ‘significant victory’.

As for the Premier League, the report goes on to point out that the league is facing legal costs in excess of £10 million and questions over its fitness to regulate.

The conclusion of the tribunal reads, “In the first partial final award it was declared that the APT rules and amended APT rules were unlawful in three respects.

“There now arises for decision the question whether those three respects can be severed from the remaining APT rules so that those remaining APT rules are valid and enforceable.

“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.”