Manchester City Scores Victory Against Premier League APT Rules
Manchester City has scored a victory over the Premier League in relation to its Associated Party Transaction (APT) rules.
The publication of the Rule X Arbitral Tribunal Award, found in favour of Manchester City who claimed the Associated Party Transaction (APT) rules are unlawful and the Premier League’s decisions on two specific MCFC sponsorship transactions have now been set aside.
Download the judgement here
The Tribunal found that both the original APT rules and the current, (amended) APT Rules violate UK competition law and violate the requirements of procedural fairness.
They also ruled the Premier League had abused its dominant position and determined both that the rules are structurally unfair and that the Premier League was specifically unfair in how it applied those rules to City in practice.
However, the Tribunal’s findings endorsed the overall objectives, framework and decision-making of the APT system and upheld the need for the APT system as a whole, rejecting the majority of Manchester City’s challenges. Moreover, the Tribunal found that the rules are necessary in order for the League’s financial controls to be effective.
The Tribunal determined that the APT rules are necessary, pursued a legitimate objective and were put in place to ensure that the Profitability and Sustainability Rules (PSR) are effective, thereby supporting and delivering sporting integrity and sustainability in the Premier League. It was noted that “it is difficult to see how the PSR can be effective” without the APT Rules, including the ability to restate transactions.
The Tribunal has concluded APT Rules must now integrate the assessment of Shareholder loans and remove some of the amendments made to APT Rules earlier this year.
Otherwise, the Premier League rulebook has been found to comply with competition and public law standards and is an effective and necessary system for assessing the FMV of APTs to ensure the integrity of the League’s Profitability and Sustainability Rules.
The Premier League is now conducting a process that can allow clubs to enact those specific changes quickly and effectively.
