Manchester City appeared to secure a major victory in its ongoing legal battle against the Premier League on Thursday.
Currently, the club is contesting 115 charges brought by the league, while simultaneously contesting the associated transaction rules (APT) that govern financial dealings related to sponsorship.
These regulations aim to restrict how much affiliated parties can invest in clubs through sponsorship arrangements.
There was initially a plan for a vote on potential amendments to these APT rules, which was to involve all 20 Premier League clubs.
However, this vote was removed from the schedule at the last minute, raising questions about the legal landscape surrounding sponsorship deals in the league.
One prominent example of such a deal is Manchester City‘s front-of-shirt sponsorship with Etihad, which is connected to the club’s ownership.
City’s legal battle centers on the “fair market value” of sponsorships from entities with connections to the club, such as their deal with Etihad Airways.
The club believes the rules stifle their commercial freedoms, especially as they try to compete with global brands like Manchester United, Liverpool, and Chelsea.
While the exact outcome of the case remains confidential, the postponement of the vote is seen by some as a precaution in case City wins, while others attribute the delay to feedback from clubs.
The result of the arbitration is still pending, and while it could lead to a court case, arbitration offers a legally binding decision without involving a courtroom.
Article updated 2 months ago. Content is written and modified by multiple authors.
