Manchester City has launched a fresh legal challenge against the Premier League's Associated Party Transaction (APT) rules, marking the latest development in an ongoing legal saga. The dispute dates back to June 2023 when Manchester City initially contested modifications to the APT regulations, which the Premier League had introduced to curb the richest clubs from inflating commercial deals. These changes are intended to ensure a competitive balance within the league by mandating that all transactions between clubs and companies linked to their owners remain at "fair market value".
In November 2023, the Premier League successfully secured the minimum 14 votes required to pass amendments to the APT rules. Despite opposition from Manchester City, Aston Villa, Newcastle, and Nottingham Forest, the league moved forward with the changes. The Premier League steadfastly believes that the amendments are lawful and adhere to UK competition law requirements.
"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." – Richard Masters
This ongoing legal battle intensified after an arbitration panel reviewed the APT rules in October 2023, finding certain elements unlawful. Following this decision, both Manchester City and the Premier League declared partial victory. In response, the Premier League urged clubs to vote on further modifications to align the rules with legal standards.
Despite these efforts, Manchester City has initiated another legal action just days before the first shareholder meeting of 2025. This development underscores the club's persistent contention with the league's regulatory framework. Currently, three separate legal cases are active between Manchester City and the Premier League.
The latest changes to the APT rules include integrating shareholder loans into the fair market value assessment, rolling back certain previous amendments, and altering how clubs access the Premier League's databank. These modifications aim to fortify the league's regulatory system while maintaining compliance with legal standards.
"The parties are currently corresponding in relation to further directions." – Richard Masters
Richard Masters, a key figure in the Premier League's administration, has affirmed that despite ongoing legal proceedings, the APT rules remain effective and binding for all clubs involved.
"The APT rules remain in full force and effect and clubs remain required to comply with all aspects of the system." – Richard Masters
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