The Premier League has informed its clubs that it will take time to assess the implications of the recent arbitration ruling involving Manchester City. In a letter from chief executive Richard Masters, which was obtained by the BBC, Masters signaled that there could be a delay to key meetings scheduled for next week. He indicated that the league was carefully considering how to amend its rules following the tribunal’s decision, which addressed the Premier League’s associated party transaction (APT) regulations governing commercial deals.
Key Ruling and Implications for APT Rules
The arbitration panel’s decision, which was made public earlier this week, followed Manchester City’s challenge to the APT rules. These regulations are designed to ensure that sponsorship deals involving companies connected to club owners are valued fairly. While both sides claimed partial victories, the tribunal ruled that two elements of the APT regulations were unlawful. The panel stated that low-interest shareholder loans should not be excluded from the APT rules and that the February amendments tightening these regulations violated competition law.
Despite these rulings, the Premier League maintained that the overall objectives of the APT system were validated by the panel. The league has since committed to revising the rules “quickly and effectively” to address the tribunal’s findings. However, in light of the decision, Masters emphasized that more time would be needed to finalize proposed amendments and distribute them to the clubs for review.
Differing Club Reactions and Potential Delays
City reacted sharply to the Premier League’s interpretation of the tribunal’s ruling, accusing the league of issuing a “misleading” summary. The club expressed concerns about the speed at which new APT rules might be passed, warning that a rushed response could lead to further legal action. Manchester City also argued that parts of the APT rules had effectively been rendered “void” by the tribunal’s decision.
Meanwhile, clubs across the league have expressed mixed views on the situation. Some voiced concerns about the potential disruption caused by the ongoing dispute, while others expressed a desire to resolve the matter and shift focus back to football. Masters acknowledged the feedback from clubs and reiterated the importance of a careful and considered approach to amending the rules, which may lead to delays in the previously scheduled meetings.
The Premier League is also seeking additional clarification from the arbitration panel regarding the status of the APT regulations in the wake of the ruling. However, this case remains separate from the broader disciplinary process against Manchester City, in which the club faces 115 charges for allegedly breaching financial regulations. City continues to deny any wrongdoing in that matter.
