Manchester City have accused the Premier League of ‘misleading’ clubs and warned of more possible legal action amid bitter accusations following their battle for the Associated Parties (APT).
The civil war within the English top flight escalated as the champions accused the league of “several inaccuracies” in its “peculiar” summary of the tribunal’s findings. Further legal disputes could arise if clubs now make rapid changes to the rules governing APTs, the head of the club’s legal department now suggests.
City general counsel Simon Cliff outlined the club’s dismay in a letter sent to all the other top clubs on Monday evening, hours after both the club and the league claimed victory.
Previously, the league had categorically rejected City’s claim of a seismic triumph, only admitting that the ruling showed a “small number of individual elements” did not comply with competition law. “These elements can be addressed quickly and effectively by the League and the clubs,” the league added, with a shareholders meeting to rectify the rules set for this month.
Cliff wrote to the other 19 clubs in an attempt to dismantle the lengthy competition statement, saying the panel’s summary of the award was “incorrect”.
“We will write to the PL separately about this, but in the meantime, given the findings in the awards ceremony, this is the time for careful reflection and consideration by all clubs, rather than a knee-jerk reaction,” Cliff then wrote. warning against Premier League plans to quickly change the APT rules, apparently in line with the tribunal’s findings.
“Such an unwise course of action would likely lead to further legal proceedings with further legal costs. It is crucial that member clubs feel they can have confidence in their regulator.”
Cliff tells clubs the “Premier League summary is misleading and contains several inaccuracies”.
“Of even greater importance,” Cliff adds, “is the PL’s suggestion that new APT rules should be adopted within the next ten days.”
‘Process was poorly thought out’
Telegraph Sport reported on Monday how further tensions were simmering at a meeting of clubs next week, with City opposing plans to retrospectively rule out the application of fair market tests to shareholder loans in the three years since the APT rules were introduced.
Those who understand the club’s position are now suggesting that the 2021-2024 sponsorship deals should be applied to fair market value tests, but not applying shareholder loans in that period would be “discriminatory” in the wake of the arbitration award. The likes of City’s bitter rivals Arsenal are among the teams to benefit from such loans in recent years.
Abu Dhabi-owned City launched an unprecedented arbitration claim in February alleging ‘discrimination’ over rules governing the market value of sponsors and transfers. In June, a two-week arbitration hearing was held in private, with up to sixty lawyers present together in the room.
In opposing interpretations of a 175-page judgment that was eventually made public on Monday, the league claimed it had “endorsed the overall objectives, framework and decision-making of the APT system”, while City also claimed they had “succeeded ”.
Cliff now writes: “When the PL deliberated and proposed the original APT rules in late 2021, we pointed out that the process (which took several weeks) was rushed and ill-conceived and would result in rules that were anti-competitive. . The recent award (panel conclusion) has fully confirmed these concerns.
“The tribunal has declared the APT rules unlawful. MCFC’s position is that this means that all APT rules are null and void, and have been since 2021.
“In recent correspondence, the PL agreed with MCFC that this is an issue to be resolved by the tribunal. It is therefore remarkable that the PL is now trying to involve its member clubs in a process to change the APT rules, at a time when it does not even know the status of those rules.”
However, details in the findings reveal a major divide between clubs. Witnesses for the Premier League included Manchester United, Liverpool, Arsenal, Tottenham, Brighton and West Ham. Everton, Newcastle and Chelsea, meanwhile, provided some support for City, and Nottingham Forest are also said to sympathize with the champions’ cause.
In his notice to all clubs, Cliff states that the ruling “does not constitute an ‘endorsement’ of the APT Rules, nor that the APT Rules, as adopted, were ‘necessary’ to ensure the effectiveness of the competition. financial controls”.
“It is incorrect that the tribunal’s decision identifies ‘certain discrete elements’ of the APT rules that need to be amended to meet the requirements of competition and public law,” he added.
Commenting on the Premier League stating that “Manchester City were unsuccessful in most of their challenge”, Cliff writes: “This is a strange way of looking at the decision. While it is true that MCFC was unsuccessful on every count in its legal challenge, the club did not have to prove that the APT rules are illegal for many different reasons.
“It is enough that they are unlawful for one reason. In that case, the tribunal found that the APT rules were unlawful for three different reasons.”
Telegraph Sport has approached the Premier League for comment.
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