Manchester City have recorded another landmark legal victory over the Premier League, whose previous regulations governing Associated Party Transactions (APTs) have been ruled void and unenforceable.

Both sides claimed wins in their off-the-pitch fight in late 2024, when it was ruled that the Premier League's APT rules were not in line with competition law by an independent tribunal.

The regulations were brought into force following Newcastle United's Saudi-backed takeover in 2021, as a means of ensuring that clubs' dealings with companies linked to their owners were of fair market value.

However, City successfully argued that the exclusion of shareholder loans from APT rules breached competition law, and the Premier League subsequently made amendments to their regulations to reflect the ruling of the three-person panel.

The Sky Blues have since launched another challenge against the amended rules, which were voted in by a majority verdict; only City, Nottingham Forest, Aston Villa and Newcastle voted against the new regulations.

Man City score another win over Premier League as APT ruling made

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That hearing will be heard imminently, but in the meantime, the Premier League have suffered a potentially costly defeat, as the previous APT rules - which were in place from December 2021 to November 2024 - have now been declared void and unenforceable.

"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," a statement from the Premier League read.

"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."

What does the Premier League's APT ruling mean?

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The Premier League were keen to stress that the amended APT rules, which have been in force since City's first legal challenge in November, are unaffected by the tribunal's decision and remain in place for now ahead of the next hearing.

However, the Premier League could now find themselves losing millions or tens of millions, as any clubs who struck relevant deals while the old rules were in place can apply for compensation if they feel that theirs were undervalued.

Man City alleged that they had been unfairly blocked from shaking hands on deals with Etihad Aviation Group and First Abu Dhabi Bank last year, while other clubs' shareholders were investing hundreds of millions of pounds into their club either interest-free or at low interest rates.

The Citizens' fight with the Premier League over APT rules is separate to their case over 115 charges of alleged financial breaches, the outcome for which Pep Guardiola expects to receive within a month.

Written by
Ben Knapton