I have previously spoken about the unprecedented number of charges levelled against Manchester City by the Premier League, to which a hearing is yet to happen.
Now, a new dispute has occurred, in relation to ‘associated party transactions’.
APT rules govern deals between teams with the same owner. The Premier League don’t want owners using income to transfer over to their teams with less income to overpower the market. Any deal currently has to go to an independent panel to decide if it is ‘of fair market value’. Manchester City Footballing Group have 13 clubs around the world. City want to remove the APT restrictions with regards to income and have said that APTs are in contravention with competition law.
Man City say that the rules inhibit late-comers to the established league, those that have had the longevity to be able to benefit from their financial position that the league has generated for them. Manchester United have had years to generate commercial success, however Manchester City’s success is much more recent, they don’t have the historical means to grow as exponentially.
City’s main sponsors have ties to the UAE. Their kit is all related to Etihad Airways and it is evident that City are more likely to be affected by these rules because they are state owned. Similar to Newcastle, autocratic states are allowed to own football clubs, and their claim relates to a ‘discrimination against Gulf ownership’.
However, the legal action may also be linked to the 115 charges levelled against them. City’s intention could be to invalidate one of the leagues longstanding rules in order to undermine the others.
Whether they will be successful or not is unclear. The rules go deeper than just simple deals between co-owned clubs. It relates to the distribution of the league’s current finances and the strive to maintain a competitive league; clubs like Aston Villa, Newcastle and Brighton now present threats to the big 6, so it seems understandable that City would do everything they can to retain any advantage that is coming their way.