Manchester City may have persuaded an independent panel that the Premier League’s rules on sponsorship deals are insufficient, giving the club a boost in its defense against 115 alleged breaches of financial regulations.
If City lose the legal battle with the Premier League, they could face severe penalties, including potential expulsion from the top flight. The club has been contesting the rules surrounding Associated Party Transactions (APT), arguing that they conflict with the Competition Act 1998.
According to The Times, a vote on APT rules among the 20 Premier League clubs was scheduled for a meeting on Thursday. However, the vote was unexpectedly removed from the agenda late on Wednesday, a move seen as a “significant victory” for City.
While the vote isn’t directly related to the 115 charges against the club, many of the allegations involve sponsorship agreements. The ongoing hearing into City’s case began last week and is expected to last at least two months.
The APT rules were adjusted in 2021 following Newcastle United’s takeover by Saudi Arabia’s Public Investment Fund, designed to prevent clubs from inflating sponsorship deals with associated parties and ensuring such transactions reflect “fair market value.” The vote was aimed at limiting access to these deals’ details, but the last-minute delay may favor City.
Rival clubs are concerned that if City prevails, it could allow clubs to set higher values for sponsorship deals, freeing up more funds for spending.
Meanwhile, City has announced that the redevelopment of the Etihad Stadium, expanding its capacity to over 60,000, is set to be completed by the 2025/26 season, despite the looming threat of relegation if they lose the case.