The Premier League’s rules on commercial deals – prior to their amendment last November – have been declared “void and unenforceable” by an arbitration panel after a challenge by Manchester City.
The four-time champions sued the league over its associated party transaction (APT) rules last year with a panel declaring three aspects of them unlawful last October.
The APT rules seek to ensure deals done between clubs and entities linked to their owners are for fair market value.
The Premier League felt the October ruling required only discrete elements of the APT rules to be amended, which clubs duly voted to do a month later.
Club statement
— Manchester City (@ManCity) October 7, 2024
City’s position in October was that the whole set of rules was void and that no “knee-jerk” changes should be made. Both sides sought clarification of the ruling from the original panel.
The panel stated in its concluding remarks, seen by the PA news agency: “The three respects in which the APT rules and amended APT rules were unlawful cannot be severed with the result that the APT rules as a whole are void and unenforceable.”
The panel’s reference to amended rules refers to changes made in February last year.
City has now also separately challenged November’s amended rules, which is being heard by the same arbitration panel.
On that, the panel said: “However, there remains for decision (in the fresh arbitration commenced on January 2025) whether the November 2024 amended APT rules are valid and effective.”
Clearly in light of Friday’s news, that decision is crucial for how commercial deals are governed in the future.
Manchester City declined to comment. The Premier League had no immediate comment, but it is expected it may make a statement regarding the ruling later on Friday evening.
Sources close to the league insisted the new rules as adopted in November remained in force.
