February 10 – Premier League champions Manchester City have launched a new legal action against the Premier League over associated party transactions (ATP).
It’s the second time the club have moved against the ATP rules. In Manchester City’s view, the new rules governing sponsorship deals are “unlawful”. Last year an independent arbitration panel ruled against some aspects of the league’s ATP after City had sued.
The Premier League established the rules to prevent clubs from profiting from commercial deals with companies linked to their owners that are deemed above “fair market value”.
In a letter sent to the clubs, league chief executive Richard Masters, wrote: “Manchester City FC seeks a declaration that the amendments approved by clubs in November (and therefore the current APT rules in force) are unlawful and void.”
“The Premier League remains strongly of the view that the amendments passed in November were lawful and the APT rules comply with all competition law requirements.
“We consider that the new arbitration must be resolved as soon as possible and, to that end, have agreed that the same tribunal should be appointed to hear the new case. The parties are currently corresponding in relation to further directions.
“The APT rules remain in full force and effect and clubs remain required to comply with all aspects of the system.”
In November, City, Aston Villa, Newcastle and Nottingham Forest voted against the new rules in November and Chelsea abstained. The defending champions are now attacking the latest set of ATP rules.
In a landmark case, the club are also awaiting a verdict after being charged by the Premier League with more than 100 alleged breaches of financial rules. The club have consistently denied any wrongdoing.
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