Manchester City Football Club has accused the Premier League of distorting competition in favour of Arsenal and other rival clubs. The club insists that the rules over shareholder loans unfairly benefit these teams.
The controversy began following Newcastle United’s Saudi-led takeover in 2021. In response, the Premier League proposed rules on Alternative Profitability and Sustainability (APTs) to prevent clubs like Newcastle United and Manchester City from signing inflated sponsorship deals to avoid financial breaches.
However, any deal deemed inflated was denied, leading to legal action from Manchester City after their sponsorship deals with Etihad Airways and First Abu Dhabi Bank were blocked. The Cityzens challenged these rules in court, claiming they were unfair and unlawful.
Tribunal vindicates Man City's claims
A report by Mike Keegan from Daily Mail revealed that a tribunal declared the regulations entirely void in February 2022. This decision vindicated Pep Guardiola's side, potentially enabling clubs whose deals have been blocked to sue the Premier League.
This verdict could trigger a series of giant compensation claims and plunge the competition into crisis—an independent panel sided with Man City—whose case was led by Paul Harris KC and Lord Pannick KC of Freshfields.
The disputed rules ran from December 2021 to November 2024 but have now been declared 'unlawful' in their entirety—always 'null' and 'void'. This outcome is a significant defeat for the Premier League as three elements were deemed unlawful—one being that shareholder loans were not subject to fair market value tests included in APT rules.
Accusations against rival clubs
Matt Lawton from The Times reported that Man City accused the Premier League of distorting competition favouring Arsenal along with Brighton & Hove Albion, Everton, Leicester city who allegedly benefited from huge loans from their owners.
Man City issued a scathing attack on the league's attempt to amend sponsorship rules declared unlawful and void by an independent tribunal. The defending Premier League champions argue that these clubs have had an unfair advantage. In a broader point, The Times reports that Man City insists the Premier League should not change rules already declared void and was too hasty in its response to the previous verdict.
Man City highlights the huge shareholder loans, running into hundreds of millions, that other clubs have benefited from—giving them 'an unfair advantage' as Premier League sides grapple with profit and sustainability rules. The unfolding drama surrounding these accusations promises to keep sports fans and sports betting enthusiasts on their toes as they await further developments.
