Huge game changer for Newcastle United after Manchester City win APT appeal v Premier League?

Manchester City have defeated the Premier League in a legal challenge over rules about ‘inflated’ sponsor deals from companies linked to their owners.

This is Monday’s breaking news.

With The Mail (see below) the rest of the media reporting on what could be a seismic shift.

This could be a huge game changer for Newcastle United after Manchester City win APT appeal v Premier League.

The Premier League and certain leading clubs now looking to have acted in haste, without taking due care and attention, in their desperation to stop Newcastle United becoming competitive, whilst at the same time riling Manchester City as well.

The fact this breaking news comes on the third anniversary of the Newcastle United takeover is very APT!!!

The Mail report – 7 October 2024:

BREAKING NEWS

Manchester City DEFEAT the Premier League in legal challenge over rules about ‘inflated’ sponsor deals from companies linked to their owners – which threatens to blow up football’s financial regulations
Man City’s sponsorship rule win is separate to their 115 alleged breaches case

Manchester City have scored a seismic victory in their war with the Premier League after new rules on sponsorship deals were branded ‘unlawful’.

In a significant, landmark verdict that will send shockwaves through the top flight, a heavyweight panel of retired judges has ruled that regulations aimed at preventing clubs from inflating deals with companies linked to their owners breach the Competition Act – and that the top flight was wrong to stop two recent City deals.

The Abu Dhabi-owned four-in-a-row champions, currently facing 115 charges of breaking Premier League financial rules in a separate case, took the league to court earlier this year. They claimed the rules, brought in after the Saudi-led takeover of Newcastle United and amended in February, were unfair.

And in a ruling that could spell trouble for others not least rivals Arsenal the system on Associated Party Transactions (APTs) was deemed unlawful. The panel gave a number of reasons, including the fact that the rules do not extend to loans from owners and shareholders.

Of 4billion borrowed across the league 1.5bn comes from shareholder loans – including all of the Gunners estimated 250m borrowings and almost all of Brighton’s.

City had argued that such payments were unfair and not at market value as they were often at zero or no interest or did not have to be repaid at all. If commercial rates are now applied and those loans included in club’s profit and sustainability accounts – many could find themselves in breach of financial regulation in what could be a nightmare scenario that would heap pressure on Premier League bosses.

The verdict could also open the door for City and others to pen significantly higher deals with related parties.

Within the ruling it also emerged that Arsenal, Manchester United, Liverpool, and West Ham gave evidence in favour of the Premier League, along with Brentford, Bournemouth, Fulham, and Wolves.

Among their arguments City said the changes were down to ‘fearmongering’ after the Saudi takeover at Newcastle. They had also claimed that the rules were specifically aimed at Gulf-owned clubs, citing an email from one club on behalf of 11 in total, but the panel found that not to be the case.