Man City now stands on the brink of claiming millions in compensation from the Premier League.
A tribunal ruled the APT rules, enforced from 2021 to 2024, as unlawful. Consequently, the club may recover its lost revenue.
The Premier League introduced Associated Party Transaction rules in December 2021 to regulate sponsorship deals with club-linked entities. However, the tribunal determined these rules to be void and unenforceable. Therefore, the affected transactions now open the door to compensation claims.
Man City faced issues with three key transactions. First came the Abu Dhabi Bank sponsorship. Second was the Etihad Aviation Group deal. Third, the Emirates Palace deal underwent its own adjustments. Each transaction was either rejected or modified during the dispute period.
In April 2023, the club submitted the Abu Dhabi Bank deal for approval. Unfortunately, the process took over six months to resolve. Moreover, the ruling capped the deal at a fair market value lower than initially proposed. Thus, the club lost potential revenue during that period.
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The compensation claim covers the difference between the submitted deal and the capped transaction. In addition, it includes interest and legal costs. Early estimates suggest a recovery in the low single millions for the 2023/24 and 2024/25 seasons. Clearly, the ruling has significant financial implications.
Furthermore, an expert noted that English law awards damages to restore lost revenue. This legal principle ensures the club should regain its rightful position. As a result, City may secure the compensation lost during the ruling process. In turn, this decision could set a strong legal precedent.
Man City plans to launch a new legal challenge against the existing APT rules. The club remains determined to address these issues. Consequently, they aim to ensure future sponsorship deals reflect true market values. Meanwhile, the Premier League faces pressure to review its regulations.
Moreover, the club now grapples with additional challenges on the pitch. Pep Guardiola contends with 115 charges that add pressure to the team. Notably, the side recently suffered setbacks, including a loss to Real Madrid. Additionally, the club signed Omar Marmoush from Frankfurt in January, and he scored a first-half hattrick against Newcastle on 15 February, boosting morale. Thus, City navigates a turbulent period both on and off the field.
