October 8, 2024
The Premier League has called an urgent meeting with all 20 clubs to discuss changes to its regulations after Manchester City’s tribunal result.
Some of City’s complaints were upheld, particularly about Associated Party Transactions (APT). City’s legal team argued that interest-free loans from shareholders should be part of APT rules. Meanwhile this might put several clubs at risk of breaking Profit and Sustainability Rules.
Forest was one of five clubs that supported City. Arsenal is also at risk, having accepted around £200m in shareholder loans to increase transfer spending. They presently face pressure to balance their finances.
The tribunal also revealed City were unfairly stopped from securing two major sponsorship deals earlier this year. The champions are now free to negotiate larger sponsorships with associated parties and may seek compensation from the Premier League.
Premier League bosses are rushing to organize a meeting with all member clubs next week. The focus will be on the tribunal’s ruling on sponsorships, which could lead to significant changes in league rules.
While the panel dismissed City’s claim of “discrimination against Gulf ownership,” it supported the key principles behind APT regulations. Despite the challenges, the Premier League is claiming victory, stating that it can swiftly address necessary amendments to its framework.
Their statement reads: “The Premier League welcomes the Tribunal’s findings, which endorsed the overall objectives, framework and decision-making of the APT system.”
It added, “The Tribunal upheld the need for the APT system as a whole and rejected 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.”
Acknowledging the few areas highlighted by the tribunal, the league asserted: “The Tribunal did, however, identify a small number of discrete elements of the rules which do not, in their current form, comply with competition and public law requirements. These elements can quickly and effectively be remedied by the League and clubs.”
During the legal proceedings, Chelsea, Newcastle United, Forest and Everton testified in support of Manchester City. On the ither hand, Brighton, West Ham, Manchester United, Liverpool, Tottenham, and Arsenal served as witnesses for the Premier League
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