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Manchester City wins court case against Premier League in non-Financial Fair Play dispute

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English football club Manchester City have won a major court victory against the Premier League, but while many thought it was a case of 130 allegations of breaches of Financial Fair Play, it quickly became clear that this was not the case. This time, sponsorship rules that applied from 2021 to 2024 were declared invalid.

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It is about related party transactions (APT), a rule that was intended to prevent clubs like City or Newcastle from making financial gains through lucrative sponsorship deals linked to their owners. Large sponsorship deals, far above market value, were used to inject money into the club's finances, explains Spanish newspaper Marca.

In early October, the court, acting through an independent panel, ruled that the Premier League had unlawfully blocked two sponsorship deals with Manchester City. However, Premier League chief executive Richard Masters argued at the time that the court had in fact “upheld” the APT rules and had merely found “certain elements that needed to be changed”.

However, the court again ruled in favor of City, who accused the Premier League of "misleading" other clubs: "The APT rules were completely illegal.", writes the Daily Mail.

This ruling could have serious consequences for the Premier League's finances - with the expected cost of covering all the costs of the trial estimated at around €24m. In addition, City could also seek huge damages from the Premier League.

– Any contract that was rejected or had its value reduced under the APT system could now be subject to large compensation payments. If a club believes its competitive performance has been compromised by a decision made under the previous APT system, it can also file a lawsuit – writes the British newspaper.

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