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Breaking News: Man City call out Premier League for ‘misleading’ clubs as letter sent to rivals

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Following the resolution of their legal issue over sponsorship restrictions, Man City sent letters to the Premier League and the other 19 clubs.


In regards to the legal battle the Sky Blues conducted over top-flight regulations controlling commercial partnerships, Manchester City has accused the Premier League of “misleading” clubs.



The four-time champions stated their stance that all associated party transaction (APT) rules were now null and void in a letter they sent to the league, the other 19 teams, and the league on Monday night.


“Unfortunately, the synopsis is deceptive and includes multiple errors,” general counsel Simon Cliff for the club stated in an email obtained by the PA news agency.

The Premier League’s recommendation that new APT regulations be passed within the next ten days, however, is much more concerning.

We noted that the lengthy, hurried process of creating the initial APT Rules was counterproductive and would lead to anti-competitive regulations when the Premier League commented on and proposed them in late 2021. The current prize completely validates those worries.

“The APT regulations have been ruled illegal by the tribunal. According to MCFC, this implies that the APT regulations are null and void and have been since 2021.

City filed a lawsuit earlier this year, claiming that the APT regulations violated competition law.

The purpose of the APT regulations is to guarantee that business transactions with organizations connected to a club’s owners are carried out for fair market value rather than artificially inflated amounts.

After the arbitration panel determined that the rules were invalid due to their exclusion of shareholder loans, City declared victory.

Cliff described the league’s statement in its summary that City had failed most of their challenge as “peculiar” to the clubs.

“While it is true that MCFC’s legal challenge did not prevail on every point, the club was not required to demonstrate that the APT regulations are illegal for a variety of reasons. The fact that they are illegal for one reason is sufficient. In the end, Cliff wrote, the panel determined that the APT restrictions are unconstitutional for three distinct reasons.

The league is believed to have summoned a club meeting to discuss implementing the “quickly and effectively” amendments to the regulations that resulted from the tribunal judgment.

Cliff cautioned that a “kneejerk reaction” to changing the rules at this time could result in additional legal action.

He stated that “careful reflection” was required for the next steps.

 




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