Manchester City achieved a positive outcome in their arbitration panel ruling regarding the alleged violations of the English Premier League's rules on Associated Party Transactions (APT). The Premier League presented the panel's redacted 165-page ruling as an endorsement of the overall objectives and decision-making of the APT system.
Panel's take on the Case
The panel found that certain aspects of the league’s APT rules violated British competition law and were considered unlawful because clubs were not allowed to provide input on the types of data that the league would consider. Additionally, the panel ruled that the Premier League's decision regarding two transactions in 2023, involving First Abu Dhabi Bank and Etihad Aviation Group, was reached in a procedurally unfair manner and must be overturned.
The rules of the APT were created to uphold the competitiveness of the Premier League by preventing clubs from artificially inflating the value of sponsorship deals with companies connected to their owners.
City has announced that it has successfully pursued its claim, and the Premier League has been found, among other things, to have misused its dominant position.
City's list of Friends and Foes in the Arbitration process
Additionally, reigning champion City is currently part of a separate independent hearing regarding the club's alleged violations of Premier League financial regulations, which commenced in September. A verdict is anticipated before the conclusion of the current season.
In the arbitration process, the ruling stated that Chelsea, Newcastle United, Nottingham Forest, and Everton acted as witnesses for City, while Manchester United, Liverpool, Arsenal, Tottenham Hotspur, Brighton & Hove Albion, and West Ham United were witnesses for the Premier League.
The findings reveal a stark contrast between clubs. Witnesses for the Premier League included Manchester United, Liverpool, Arsenal, Tottenham, Brighton, and West Ham, while Everton, Newcastle, and Chelsea offered some support for City. Additionally, Nottingham Forest expressed their sympathies for City.
The most significant development for rival clubs is City’s successful challenge regarding the inclusion of loans from club shareholders in fair market tests. Notably, Arsenal has previously borrowed over £200 million in shareholder loans by the end of 2022-23.