Jack Grealish with the 2023/24 Premier League trophy.
Manchester City have reportedly written to their fellow top-flight clubs asking for help in their bitter legal dispute with the Premier League. In June, the club launched a complaint against the authority responsible for regulating associated party transactions (APT), which it described as “illegal”.
Last month, an independent panel upheld a selection of the city's complaints, including regarding shareholder loans.
They ruled that the exclusion from APT rules of these loans, which club owners could previously use to invest in their teams, was discriminatory and unfair.
The Premier League has since been forced to propose amended regulations, which all 20 teams will vote on next week. They want members to accept APTs including shareholder loans, but only with other modifications around fair market value tests.
But according to The timesCity's general counsel, Simon Cliff, sent correspondence to City's 19 rivals on Friday, urging them not to vote in favor of the Premier League and threatening further legal action if necessary. He also criticized the speed with which the new proposals were presented.
“Man City strongly supports strong, effective and legal regulation of related party transactions,” he said. “Several APT rules were found to be illegal. The legal effect of this is — we say — that the APT regime is void and, importantly, the old RPT regime (related party transactions), which the APT regime replaced, remains in force until a new regime is agreed.
Pep Guardiola's club also faces 115 FFP charges.
“In the meantime, common sense dictates that the PL should not rush to adopt amendments – especially those that involve significant legal risk – until it knows the outcome of the court. It is important that a new regime is based on fair, thoughtful and legal rules.
Cliff adds that it is “essential” that the Premier League now puts the right rules in place and argued that the current proposals were rushed. His calls follow league leaders writing to their current champions on Saturday, strongly refuting the accusations made against them by the club.
The timing of City's request to their rivals is ironic given last week's developments. The case is separate from the 115 charges of financial fair play violations they currently face, which cover a nine-year period from 2009 to 2018.
As a result, four of the five remaining teams in English football's 'big six' have made arrangements for their own legal action. Manchester United, Liverpool, Arsenal and Tottenham Hotspur are now able to take City to court if found guilty of the charges.
A verdict on the case is not expected until 2025. If City were found guilty, the club could potentially face huge points deductions and relegation to the Championship.
Source: https://www.express.co.uk/sport/football/1976706/Man-City-Premier-League-clubs-ATP-rules