Manchester City have reportedly warned the Premier League of “costly legal disputes” ahead of a vote on proposed amendments to APT rules next week.
Manchester City have reportedly written to all 19 other Premier League clubs to outline their concerns about the legalities of proposed redrafted finance rules ahead of next week’s vote.
Pep Guardiola‘s side have been the dominant force in England for a number of years, winning six of the last seven titles on offer alongside an array of domestic cups, as well as a Champions League trophy at the end of the 2022-23 season.
However, the legitimacy of the team’s achievements have been questioned by some ever since the club were charged by the Premier League for breaches of its financial rules in February 2023.
City pushed back and challenged the fairness of Associated Party Transaction rules (APTs), and while a commission acknowledged in October the necessity for APTs, it was deemed that the rules needed to be amended in order to come in line with EU competition law.
A vote is set to take place next week on November 22 regarding proposed changes to APT rules, but a letter obtained by the BBC shows that the Citizens’ chief lawyer Simon Cliff insists that the latest draft still violates the commission’s ruling, saying: “It is important that a new regime is grounded in rules that are fair, considered and legal.
“Our strong desire is to avoid any future costly legal disputes on this issue and so it is critical that the Premier League gets it right this time round.”
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The Premier League hit back
City have clashed with the Premier League a number of times over the past years, with both sides claiming victories when a commission ruled on the legality of APT rules.
The commission’s verdict outlined that shareholder loans should no longer be excluded from spending restrictions, but these are set to now be included in spending costs and subject to interest rates.
Cliff noted that City have taken issue with the Premier League’s proposal that charges on shareholder loans are only to be imposed on new agreements after the implementation of the new guidelines.
However, despite Cliff’s protestations and warning to the other clubs in the top flight ahead of the vote, the Premier League rejected allegations that it had misled its members regarding the legality or fairness of such proposals, saying: “To the contrary, the league is well aware of, and takes very seriously, its obligations to act fairly and with an open mind.
“That MCFC does not agree with the proposed amendments, or with the timing of the process being undertaken, does not mean the consultation itself is deficient or that the league has failed to comply with its obligations as a regulator.”
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Turmoil for City
City fans will likely be weary of the off-field issues that surround the club, which is to be expected given the complex nature of the situation.
To make matters worse, the club appear to be falling behind on the pitch, with the champions’ 2-1 defeat against Brighton & Hove Albion on November 9 the team’s fourth consecutive loss in all competitions.
The Citizens are second in the top flight and are already five points behind leaders Liverpool, who they will face at Anfield in what could be a title showdown on December 1.
Guardiola also has less than a year left on his contract and there have been few signs of an imminent extension, while reported managerial target Ruben Amorim has joined Manchester United.
The 2024-25 season can still be a successful one for City, but it will continue to be shrouded by unwanted drama off the pitch.
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