Manchester City accuses Premier League of misleading clubs over court ruling | Manchester City

Manchester City have upped the ante in their battle with the Premier League, taking the unusual step of writing to the 19 other top-flight clubs accusing the Premier League of “misleading” them.

On Monday, City and the league claimed victory in a case relating to related party transaction (APT) rules. While City noted that aspects of the rules were declared unlawful in an arbitrator's ruling, the league noted that the broader ruling supported “the overall objectives, framework and decision-making” of the APT system.

City's email letter disputes the league's conclusions and claims they repeat “several inaccuracies.” City general counsel Simon Cliff wrote in a message to clubs and the league's leadership: “Regrettably the summary is misleading and contains several inaccuracies.

“While it is true that MCFC has not been successful on every point it raised in its legal challenge, the club has not had to prove that the APT rules are unlawful for many different reasons. It is enough that they are unlawful for a reason. In this case, the court concluded that the APT rules were unlawful for three different reasons.”

The city's email continued to criticize plans to reform ATP rules. The league did not comment on the email, but said in its response to the ruling that rule violations “can be addressed quickly and effectively by the league and clubs.” The league has called a special shareholders meeting next week to discuss plans, but it will not be voted on immediately.

Cliff said an impending change to the rules should cause clubs “even greater concern”. “Given the results of the award, it is time for all clubs to think carefully and consider and not react in a knee-jerk reaction,” he wrote. “Such an unwise course would likely result in further litigation with further legal costs. It is vital for member clubs to feel they can trust their regulator.

“When the Premier League consulted and proposed the original APT rules at the end of 2021, we pointed out that the process (which took several weeks) was rushed and poorly thought out and would result in anti-competitive rules. The recent award has fully confirmed these concerns.

“The court declared the APT rules illegal. MCFC's position is that this means all APT rules are invalid, and have been since 2021.” City's position is not that of the league.

Christina Philippou, an associate professor of accounting and sports finance at the University of Portsmouth, said the ruling will likely result in minor changes to the APT rules but will likely force the league to improve its regulatory practices.

“The case will have implications for the governance system and regulation of clubs in the Premier League,” she said. “Expect more rigorous rulemaking, more testing of rules in similar cases, and an expanded internal regulatory and compliance team within the league.”

The league spent more than £50m on legal advice last year fighting cases and assessing its regulatory system. It's possible, Philippou said, that the league will need to restructure its strategic approach to regulation as it faces increasing challenges to its rules.

“This would be the most cost-effective and efficient way to deal with the changes required in the future, particularly given the Premier League’s new regulatory role, where the focus has previously been largely on the commercial side,” she said.