Manchester City Triumphs Over Premier League in Legal Battle

Manchester City has secured a significant legal victory against the Premier League, as judges determined that certain sponsorship regulations are unlawful.

The Associated Party Transactions (APTs) rules were designed to prevent clubs from receiving inflated sponsorship payments from companies linked to their owners, a measure implemented after the Saudi takeover of Newcastle United to curb financial manipulation by wealthy owners.

In this instance, the Premier League had blocked Manchester City from finalizing a sponsorship deal with Etihad and another agreement with an Abu Dhabi bank in late 2023, citing the APT regulations.

However, a panel of three retired judges has now ruled that the league’s rejection of these deals was improper, as parts of the APT regulations violate the Competition Act.

This ruling is poised to create major ripples in English football, marking a significant setback for Premier League chief executive Richard Masters.

It could reshape the financial governance of the league, allowing clubs with affluent owners to secure more lucrative sponsorship agreements and facilitating player transfers among clubs under common ownership.

By inflating revenue, clubs may now have greater flexibility to invest without violating the Premier League’s profitability and sustainability rules.