It could prove to be of seismic precedent
Manchester City have secured a significant victory in their Premier League legal battle over Associated Party Transaction Rules (APT).
This comes as reported by The Times that the Premier League’s sponsorship rules were declared unlawful.
It has been reported that it was ruled that City were unfairly blocked from agreeing two large sponsorship deals earlier this year.
The Times reported that the APT rules were confirmed unlawful as they did not take into consideration interest-free loans from shareholders to clubs.
Following this ruling, it is suggested that Man City could now profit off more lucrative sponsorship deals as well as claim more compensation from the Premier League.
And, in a twist of fate that is sure to infuriate Arsenal fans, the north London club could be in danger of breaching APT rules because of the rule change towards borrowing money and the club’s £200m in shareholder loans.
The Premier League’s stance was backed by Arsenal, Manchester United, Liverpool, West Ham United, Brentford, Bournemouth, Fulham, and Wolverhampton Wanderers
This case is separate from the 115 charges and concerns the lawsuit logged by Man City against the Premier League over sponsorship rules and alleged discrimination against middle eastern owners.
The potentially significant development comes with the Premier League’s case against City for 115 alleged breaches of financial rules ongoing.
In June, it emerged that City had taken the unprecedented of suing the competition in a move that has sparked civil war in the top flight.
An outcome for the hearing of City’s 115 charges is expected in the following month.
