Just when everyone thought Manchester City had finally done it, a new twist emerged. Currently entangled in a legal battle with Premier League Associated Party Transaction via arbitration, reports came that Pep Guardiola and Co. had allegedly won the case. However, those celebrating may have to hold their horses as in reality, the Sky Blues are far away from the finish line.
The alleged decision regarding their victory spread like wildfire after a last-minute vote to amend the rules was withdrawn during this morning’s meeting between all 20 clubs. Nevertheless, in a completely different report from Sky Sports chief reporter Kaveh Solhekol, neither the cases regarding the Citizens were discussed nor there has been an update shared regarding the decision.
“If there had been a decision we would not necessarily know because it was a private tribunal and decision can only be published with agreement of both parties (PL Rule X31). If a decision is not published, we will have to wait and see if PL APT rules are changed. If they are not changed on their website it would mean PL won and existing rules remain,” wrote Solhekol on X.
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The revered journalist mentioned that since the rules haven’t been changed for the time being, one cannot justify City’s victory. On the other hand, Solhekol did acknowledge that the vote on an amendment to the APT rules was withdrawn. “The amendment was about a database of past deals which PL holds to ascertain whether proposed new deals are fair market value. Votes are regularly withdrawn at PL meetings. Other votes were withdrawn today as well,” mentioned Solhekol.
For context, City Football Group filed a two-week private arbitration hearing on June 10 to challenge the Premier League’s Associated Party Transaction (APT) rules. By submitting a 165-page legal document, they claimed the rule, sparking a civil war in English soccer.
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Manchester City’s legal win: Justice served or a mockery of the Premier League’s integrity?
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Notably, the APT was introduced in December 2021 in the aftermath of Newcastle United’s takeover by the riches of Saudi. The rules aim to retain the competitiveness of the Premier League by prohibiting clubs from inflating business agreements with corporations connected to their owners. According to these regulations, these transactions must be independently verified to be at “fair market value” (FMV).
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A key part of these rules is a database where clubs must submit all commercial contracts, which in some circumstances can be used to evaluate the accords’ fairness. Nonetheless, hypothetically, if City were to win this battle, what would it mean for the rival PL clubs?
Is Manchester City winning the Premier League APT also a success for rival clubs?
Some rival clubs fear that if Manchester City becomes successful in their fight against PL APT, it could allow the wealthiest clubs to set their sponsorship deal values without independent scrutiny. This could significantly increase their revenue, giving them much larger budgets to spend on players. Meanwhile, the other 19 clubs remain in the dark about the case’s progress, as the judgment has not yet been shared with them.
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On the contrary, one shouldn’t forget that City are also entangled in a completely different case against PL over their 115 alleged breaches of financial rules. However, that has been completely set aside for now as both parties are more focused on solving the APT crisis. It remains to be seen what developments occur at this stage.
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Manchester City’s legal win: Justice served or a mockery of the Premier League’s integrity?