Manchester City Triumphs in Legal Battle Over Premier League’s Financial Regulations

Manchester City has emerged victorious in a significant legal dispute with the Premier League regarding financial regulations. An independent tribunal ruled that the league’s rules on related-party transactions were “void and unenforceable”, dealing a blow to the Premier League’s regulatory framework.

This landmark decision could potentially trigger a series of compensation claims from clubs and create a crisis for the league. While separate from the 130 financial rule breach charges against City, this ruling strengthens the club’s position in its ongoing legal battles with the Premier League and its chief executive, Richard Masters.

The tribunal, consisting of three former senior judges, determined that the Premier League’s sponsorship regulations on Associated Party Transactions, which were in effect from December 2021 to November 2024, were entirely unlawful. This verdict means the league may have to pay up to £20 million in legal costs, covering both their own expenses and those of Manchester City.

The Associated Party Transaction rules were implemented following the Saudi-led acquisition of Newcastle United and governed sponsorship agreements with companies linked to club owners. This ruling now opens the possibility for Newcastle, Manchester City, and other clubs to pursue substantial compensation claims.

Manchester City, represented by Lord Pannick’s legal team, initiated legal proceedings after the Premier League blocked proposed deals with Etihad Airways and First Abu Dhabi Bank in 2023. The club also accused league officials of attempting to mislead clubs prior to a November vote on amendments to the Associated Party Transaction rules.

While Premier League CEO Richard Masters has acknowledged that the previous rules are now unenforceable, he maintains that new rules voted into force must still be followed by clubs. However, the tribunal judged that the Associated Party Transaction rules could not be amended through a series of minor adjustments.

This decision marks a significant shift in the Premier League’s ability to regulate club finances and could have far-reaching implications for the future of English football’s financial governance.