Manchester City has reportedly launched legal action against the Premier League regarding the Associated Party Transaction (APT) rules. The club is challenging the regulations, which were amended in November, specifically concerning what constitutes “fair market value” when dealing with entities linked to their owners.
The Premier League had made changes to the sponsorship rules following a previous legal challenge by Manchester City. However, the club’s legal team believes that the updated regulations still “discriminate” against them and provide their rivals with an unfair advantage.
Everton is one club that Manchester City claims has benefited from shareholder loans, having taken £450 million in 2022/23. The APT rules were initially deemed “void and unenforceable” in February, but this assessment applied to the original regulations rather than the updated version.
The updated rules now subject shareholder loans to the same “fair market value” test as other commercial deals. However, Manchester City argues that the “grace period” afforded to clubs, allowing them to pay off loans in full before a certain date, constitutes “preferential treatment.”
The club’s dispute with the Premier League is ongoing, with Manchester City facing 130 charges for allegedly breaching the league’s financial rules. The club vehemently denies any wrongdoing.
In related news, Liverpool and Everton are set to discuss potential changes to the transfer window with other Premier League clubs. The move aims to address concerns around the current transfer system and promote fairness among clubs.
The developments come as Manchester City prepares for a crucial period in their season, with the club facing a series of high-stakes matches. The outcome of their legal dispute with the Premier League could have significant implications for the club’s future and the broader landscape of English football.