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Reuters
14-02-2025
- Business
- Reuters
Tribunal rules Premier League sponsorship regulations 'void and unenforceable'
Feb 14 (Reuters) - The Premier League's sponsorship regulations between 2021 and 2024 are "void and unenforceable", a tribunal ruled on Friday. The decision follows a legal challenge by Manchester City against the league's Associated Party Transaction (APT) rules, which regulate commercial deals between clubs and companies linked to their owners if considered above fair market value. "In the first partial final award, the APT Rules and the amended APT Rules were found to be unlawful in three respects," the tribunal said in its conclusion. "There now arises for decision the question whether those three respects can be severed from the remaining APT rules so that those remaining APT rules are valid and enforceable. "The three respects in which the APT rules and amended APT rules were unlawful cannot be severed with the result that the APT rules as a whole are void and unenforceable." The Premier League has said the ruling does not affect the "valid operation" of its current APT rules, which were amended in November despite objections from City, Newcastle United, Nottingham Forest, and Aston Villa. "The result, the Tribunal has determined, is that the previous APT Rules, as a whole, are unenforceable," the Premier League said in a statement. "However, the previous APT rules are no longer in place, as Clubs voted new APT rules into force in November 2024. This decision expressly does not impact the valid operation of the new rules," the English league added. Invalidated rules included low-interest shareholder loans and competition law conflicts outlined by a tribunal last year. Reigning champions City had previously criticised the Premier League's approach, arguing that changes to the regulations should not have been implemented before the tribunal's final ruling. In a separate independent hearing, City claimed a partial victory after an arbitration panel ruled on sponsorship deals that the club was blocked from completing. City, who have won eight Premier League titles, one Champions League, three FA Cups and six League Cups since being bought by Sheikh Mansour's Abu Dhabi United Group in 2008, were accused of more than 100 alleged breaches of finance rules. They are expected to find out the verdict for the alleged financial breaches later this year.
Yahoo
14-02-2025
- Business
- Yahoo
Premier League issues statement after losing Man City legal battle - and Liverpool is impacted
The Premier League has issued a statement after an independent tribunal determined that its previous Associated Party Transaction (APT) rules, which were in place between December 2021 and November 2024, were unlawful. The ruling in the legal battle between the Premier League and Manchester City, which is unrelated to the much-covered 115-charges case, opens the door for top-flight clubs to pursue compensation claims against the league. The Premier League introduced the APT rules off the back of the Saudi Arabia-led Public Investment Fund takeover of Newcastle United in a bid to prevent top-flight clubs from benefitting from inflated sponsorship deals with companies linked to their owners. READ MORE: Liverpool and Arne Slot charged after Everton derby draw as FA statement released READ MORE: Gary Neville agrees with Paul Merson on Liverpool vs. Wolves prediction The APT rules were amended in November 2024, and the current set of rules are not affected by the verdict of the independent tribunal, but any clubs that saw deals rejected or reduced in value under the system when the original rules were in place could now pursue the Premier League for compensation. A Premier League statement said: "An Arbitration Tribunal has determined the effects of its first award published last year relating to Manchester City's legal challenge of the Premier League's previous Associated Party Transaction (APT) rules. "The Tribunal's decision has found that the three narrow aspects of the old APT rules, previously found to be unlawful, cannot be separated from the rest of the previous rules as a matter of law. The result, the Tribunal has determined, is that the previous APT Rules, as a whole, are unenforceable. "However, the previous APT rules are no longer in place, as Clubs voted new APT rules into force in November 2024. This decision expressly does not impact the valid operation of the new rules. "The Tribunal has made no findings as to the validity and effectiveness of the new rules. The Tribunal states that whether its decision has any benefit to the club, therefore, depends on whether the new APT rules are found to be lawful as part of the second challenge issued by the club last month. The League continues to believe that the new APT Rules are valid and enforceable and is pressing for an expeditious resolution of this matter. "The new APT rules are in full force and clubs remain required to comply with all aspects of the system, including to submit shareholder loans to the Premier League for Fair Market Value assessment."
Yahoo
14-02-2025
- Business
- Yahoo
Premier League sponsorship rules 'void' says tribunal
The Premier League's rules governing sponsorship deals from the period between 2021 and 2024 are "void and unenforceable", a tribunal has ruled. Last year, an independent arbitration panel found against aspects of the league's Associated Party Transaction regulations (APTs) after a lawsuit instigated by Manchester City. The Premier League says the tribunal's ruling does not impact the "valid operation" of APT rules, which it believes are still "valid and enforceable" and remain in "full force". The rules were formed by the Premier League to prevent clubs from profiting from commercial deals with companies linked to their owners that are deemed above "fair market value". In November, the Premier League voted through amendments to the rules despite opposition from Newcastle, Nottingham Forest and Aston Villa, as well as City. Friday's ruling is not in judgement of the November amendments which still stand but are the subject of a legal challenge. The conclusion of the tribunal reads: "In the first partial final award it was declared that the APT rules and amended APT rules were unlawful in three respects. "There now arises for decision the question whether those three respects can be severed from the remaining APT rules so that those remaining APT rules are valid and enforceable. "The three respects in which the APT rules and amended APT rules were unlawful cannot be severed with the result that the APT rules as a whole are void and unenforceable." In a statement the Premier League said: "This decision expressly does not impact the valid operation of the new rules. "The tribunal has made no findings as to the validity and effectiveness of the new rules. The tribunal states that whether its decision has any benefit to the club, therefore, depends on whether the new APT rules are found to be lawful as part of the second challenge issued by the club last month. "The League continues to believe that the new APT Rules are valid and enforceable and is pressing for an expeditious resolution of this matter. "The new APT rules are in full force and clubs remain required to comply with all aspects of the system, including to submit shareholder loans to the Premier League for fair market value assessment." Man City launch new legal claim against Premier League rules Man City v Premier League legal case verdict - what it all means 'Both sides can claim victory' - Man City legal case explained This decision is a huge blow to the Premier League and effectively it means their APT rules up to November 2024 were unenforceable. Any club who had a case heard under their rules is now in a position where they could launch a damages claim. One source has suggested this could make the Premier League – and effectively therefore its clubs – liable for tens of millions of pounds. This will also put a focus on chief executive Richard Masters, who confirmed the changes in November despite being cautioned against implementing them by City and Aston Villa amongst others. More to follow. Listen to the latest Football Daily podcast Get football news sent straight to your phone
New York Times
14-02-2025
- Business
- New York Times
Premier League APT rules declared ‘void and unenforceable' in victory for Manchester City
Sponsorship rules in place in the Premier League for nearly three years have been deemed to be 'void and unenforceable' in a blow to the league and a significant win for Manchester City. Both the Premier League and four-time defending champions City claimed victory in October of last year when an independent tribunal ruled that three aspects of the rules — known as Associated Party Transactions (APT) regulations — were 'unlawful'. Advertisement The latest ruling, seen by The Athletic, has declared that those three 'unlawful' respects of the rules 'cannot be severed with the result that the APT Rules as a whole are void and unenforceable.' A tribunal comprised of Sir Nigel Teare, Lord Dyson and Christopher Vajda KC made their conclusion following a two-day hearing at the end of last month which could open the possibility for clubs to claim compensation for deals agreed between December 2021 and November 2024 that may have been undervalued. The Premier League must also foot the legal bill which could run into the tens of millions. City's position was that the 'unlawful' elements entirely voided the APT rules — a position agreed upon by the tribunal — while the Premier League played this down and made amendments to the rules in November. The majority of the clubs — 16 of the 20 — voted through the changes with City as well as Aston Villa, Newcastle United and Nottingham Forest in opposition. Last week, City mounted a separate legal challenge against the APT amendments with the same three-person panel set to rule on that outcome too. A Premier League statement on Friday read: 'An arbitration tribunal has determined the effects of its first award published last year relating to Manchester City's legal challenge of the Premier League's previous associated party transaction (APT) rules. 'The tribunal's decision has found that the three narrow aspects of the old APT rules, previously found to be unlawful, cannot be separated from the rest of the previous rules as a matter of law. The result, the Tribunal has determined, is that the previous APT rules, as a whole, are unenforceable. 'However, the previous APT rules are no longer in place, as clubs voted new APT rules into force in November 2024. This decision expressly does not impact the valid operation of the new rules. Advertisement 'The tribunal has made no findings as to the validity and effectiveness of the new rules. The Tribunal states that whether its decision has any benefit to the club, therefore, depends on whether the new APT rules are found to be lawful as part of the second challenge issued by the club last month. The league continues to believe that the new APT rules are valid and enforceable and is pressing for an expeditious resolution of this matter. 'The new APT rules are in full force and clubs remain required to comply with all aspects of the system, including to submit shareholder loans to the Premier League for fair market value assessment.' GO DEEPER Premier League clubs have changed associated party transaction rules. Here's what it means This case is separate from City's defence of more than 100 charges against them for allegedly breaching financial regulations which they deny. The aim of the APT rules — which were devised in December 2021 following the Saudi-led, Public Investment Fund (PIF) takeover of Newcastle — were for the Premier League to regulate against its clubs using sponsorship deals with companies linked to their owners to inflate revenue streams and allow room for greater spending. The APT rules, though, ensured that Newcastle have had their sponsorship agreements with PIF-linked events company Sela and e-commerce company Noon subjected to the market value tests. City argued the rules were unlawful and against competition law. The league insisted that the rules were fully compatible with the law. GO DEEPER City vs the Premier League - explaining the 115* charges and how long the case will take City's view is that the new rules are discriminatory and face the same legal issues as the previous iteration because, the club believe, the existing shareholder loans are still not scrutinised in the same way as other commercial deals. They feel those loans should have been subjected to fair market value tests at the time and should now be subject to them retrospectively as commercial agreements from 2021 to 2024 are scrutinised. City's belief is that the new rules allow teams to keep that advantage which is, in their view, unlawful and in line with what the independent panel ruled in November. (Jakub Porzycki/NurPhoto via Getty Images)
