Excellent News for Manchester City Ahead of Their Major Trial
Manchester City has won its first legal battle against the Premier League, leading to a review of the associated company regulations aimed at preventing clubs from profiting from sponsorships linked to their owners.
The City club filed a complaint against the Premier League this year, arguing that the current associated company regulations (APT) are discriminatory, violate free market and competition laws, and have been pushed by other clubs to hinder their success on the field.
According to the British newspaper "The Times," the Premier League planned to hold a vote on this matter on Thursday during the quarterly meeting among league representatives, but this item has been removed from the agenda, indicating a potential victory for City in the courts.
The hearing for this case began on June 10 and lasted for two weeks.
The associated company regulations were introduced in late 2021, motivated by the purchase of Newcastle United by the Saudi Arabia investment fund, and aimed to prevent clubs from financially doping through sponsorships with companies that share ownership with the club.
In City's case, which has around thirty sponsorships, approximately one-third come from the United Arab Emirates, the same country that has owned the Manchester club since 2008.
Under the current rules, an independent commission must determine whether the price paid for a particular sponsorship is logical and realistic, and not inflated. Clubs fear that if City wins this legal matter, more powerful teams could artificially boost their accounts with sponsorships outside the market price.
Chelsea was investigated weeks ago for selling two hotels to a company owned by its owner, Todd Boehly, in an attempt to balance losses and avoid breaking financial fair play regulations. The English club, which earned £76 million from the two properties, was cleared by an independent commission.
This matter is unrelated to the 115 financial irregularities for which the Premier League is accusing City, and whose trial began in London last week.