Man City win legal case against the Premier League over APT rules

Cameron Smith

Updated: 14 Feb 2025 15:09 CST
3 min read

Pep Guardiola, Man City, 2023/24 — © IMAGO

Manchester City have officially won their legal battle against the Premier League over Associated Party Transactions (APTs).

An independent panel has sided with Pep Guardiola’s side by deeming that APT regulations in the English top flight, which were in place from December 2021 to November 2024, were unlawful.

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As a result of the decision, the Premier League could be forced to pay out huge compensation claims from its members, with clubs able to sue if they believe their sporting performance was harmed by the APT system.

City claimed that APT, which enforces regulations involving companies operated by the owner of the club, was in breach of public law and an independent panel has agreed with their verdict.

What has been said?

A Premier League statement read: “An Arbitration Tribunal has determined the effects of its first award published last year relating to Manchester City’s legal challenge of the Premier League’s previous Associated Party Transaction (APT) rules.

“The Tribunal’s decision has found that the three narrow aspects of the old APT rules, previously found to be unlawful, cannot be separated from the rest of the previous rules as a matter of law. The result, the Tribunal has determined, is that the previous APT Rules, as a whole, are unenforceable.

“However, the previous APT rules are no longer in place, as Clubs voted new APT rules into force in November 2024. This decision expressly does not impact the valid operation of the new rules.

“The Tribunal has made no findings as to the validity and effectiveness of the new rules. The Tribunal states that whether its decision has any benefit to the club, therefore, depends on whether the new APT rules are found to be lawful as part of the second challenge issued by the club last month. The League continues to believe that the new APT Rules are valid and enforceable and is pressing for an expeditious resolution of this matter.

“The new APT rules are in full force and clubs remain required to comply with all aspects of the system, including to submit shareholder loans to the Premier League for Fair Market Value assessment."