Manchester City have accused the Premier League of “misleading” clubs regarding the legal case concerning top-flight rules on commercial deals.
On Monday night, City sent a letter to the other 19 clubs and the league, challenging its interpretation of the case’s outcome.
The reigning champions emphasized that they believe all Associated Party Transaction (APT) rules are now void.
In an email, the club’s general counsel, Simon Cliff, stated, “Regrettably, the summary is misleading and contains several inaccuracies.”
“Of even greater concern, however, is the Premier League’s suggestion that new APT rules should be passed within the next 10 days.
“When the Premier League consulted on and proposed the original APT Rules in late 2021, we pointed out that the process (which took several weeks) was rushed, ill-thought-out and would result in rules that were anti-competitive. The recent award has validated those concerns entirely.
“The tribunal has declared the APT rules to be unlawful.
“MCFC’s position is that this means that all of the APT rules are void, and have been since 2021.”
The Premier League claimed it emerged successfully from the arbitration process, stating that the ruling “upheld the need for the APT system as a whole and rejected the majority of Manchester City’s challenges.”
The league announced plans to “quickly and effectively” revise its rulebook in consultation with its shareholder clubs.
The APT rules are designed to ensure that commercial deals with entities linked to a club’s owners are conducted at fair market value.
However, Manchester City declared victory after the arbitration panel found the rules to be unlawful, as they excluded shareholder loans.
Cliff said to the clubs that it was “peculiar” for the league to state in its summary that City had been unsuccessful in the majority of their challenges.
“While it is true that MCFC did not succeed with every point that it ran in its legal challenge, the club did not need to prove that the APT rules are unlawful for lots of different reasons,” Cliff wrote.
“It is enough that they are unlawful for one reason. In the event, the tribunal found the APT rules are unlawful for three different sets of reasons.”
The league is reportedly organizing a meeting with club representatives to discuss potential changes to the rules.
Cliff emphasized that this is not the right time for a “knee-jerk reaction” in revising the regulations, as such changes could lead to further legal complications. He stressed the importance of “careful reflection” on the best way to move forward.
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