Premier League rejects Man City's accusation it "misled" clubs over Associated Party Transactions case

Simon Cliff, the chief legal officer for Manchester City, has written to the remaining 19 clubs in the Premier League, claiming that the league has been "misleading" them regarding the recent decision about Associated Party Transactions (APT) rules made on Monday.

Sky Sports News has learned that the Premier League dismisses the claims made in Cliff's letter, which asserts that there are "multiple inaccuracies" in the Premier League's summary of the tribunal's conclusions.

On Monday, after the verdict was announced, this summary was circulated to clubs, and Cliff replied by trying to explain a few aspects more clearly.

"Unfortunately, the summary is not accurate and has a number of mistakes," Cliff stated in the email that was reviewed by Sky Sports News.

An even more pressing issue is the Premier League's proposal that new APT regulations should be implemented within the next ten days.

When the Premier League sought feedback and put forth the initial APT Rules at the end of 2021, we highlighted that the process, which lasted several weeks, felt hurried, poorly planned, and likely to create regulations that would be harmful to fair competition.

The recent recognition has completely confirmed those worries.

The tribunal has ruled that the APT regulations are illegal. According to MCFC, this indicates that all APT rules are null and void, and have been since 2021.

What are the regulations regarding transactions with related parties?

Both City and the Premier League celebrated some wins after the tribunal's findings on Monday. The league feels that the three judges supported the main goals, structure, and decision-making process of the APT system.

The arbitration panel determined that the rules from 2021, along with their updates in 2023, were illegal due to the exclusion of shareholder loans. However, the Premier League was of the opinion that City had not succeeded in most aspects of their challenge.

A summary of the tribunal's conclusions...

In his letter, Cliff expressed that it was "strange" for the league to make such statements in its summary. "Although it's accurate that MCFC didn't win on every argument in its legal battle, the club wasn't required to demonstrate that the APT rules were illegal for various reasons," Cliff explained.

It suffices to say that they are illegal for one specific reason. However, the court determined that the APT regulations are illegal for three distinct reasons.

The league indicated that adjustments to the regulations based on the tribunal ruling could be implemented "rapidly and efficiently." It is believed that a meeting with the clubs has been organized to deliberate on these modifications.

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Cliff mentioned that now is not the right moment for an impulsive change to the rules, as this could result in additional legal issues. He emphasized the importance of taking time to thoughtfully consider the next steps.

The Premier League chose not to provide a comment but maintains its stance on the summary and denies any claims that it was incorrect or deceptive.

Insiders from the league have emphasized that the clubs' gathering scheduled for next Thursday will merely serve as a platform to go over the regulations, and no decisions will be made regarding changes to those rules.

"Analysis: A Divisive Case And 115 Charges Ahead"

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Sky Sports News' lead journalist, Kaveh Solhekol:

How will this affect Man City's 115 allegations?

You could argue that this is a crucial win for Man City, especially since there is currently a hearing taking place in central London regarding the club's supposed violation of 115 financial regulations set by the Premier League.

By achieving this victory, City has called into question the financial regulations of the Premier League.

People are beginning to question the value of these financial regulations, believing they aren't credible because they were drafted too hastily.

They've taken on the challenge and succeeded, similar to Leicester City, which recently triumphed in a legal dispute regarding the financial regulations of the Premier League.

I don't want to minimize the importance of this decision. I believe it will have major repercussions for the Premier League and its financial regulations.

Does Man City view this as a significant victory?

Man City is declaring that they've triumphed, and this marks an important win for the team.

They claim to have demonstrated that the regulations are illegal, breached UK competition laws, and compromised procedural fairness. Additionally, they argue that the Premier League misused its dominant position and that the rules operated in a discriminatory manner.

However, does the Premier League also view this ruling as a success for their own interests?

In general, the tribunal has supported the goals of the ATP regulations, as well as the structure and decision-making procedures that back them.

The Premier League would state, "The panel has identified a few minor adjustments that need to be made, and we'll take care of those promptly."

They would emphasize that the important thing is that the rules will remain in place.

Which teams are the other clubs supporting?

It will be fascinating to observe the vibe at the upcoming Premier League shareholders' meeting, especially since we've learned that some clubs backed Man City while others sided with the Premier League.

Chelsea, Newcastle, and Everton all played a role in supporting Manchester City.

Arsenal, Manchester United, Liverpool, West Ham, Brentford, Bournemouth, Fulham, and Wolverhampton all submitted written statements backing the Premier League's stance.

This topic tends to create a lot of disagreement.

Man City had two agreements in mind with Etihad Aviation Group and First Abu Dhabi Bank that were prevented from going through. The tribunal has instructed the Premier League to reassess those agreements.

Looking forward, Manchester City may consider taking legal action against the Premier League to seek compensation. They could argue that the previous agreements the league has obstructed have hindered their ability to generate additional revenue for the club.

It will be interesting to observe the potential consequences of the 115 suspected charges…