Manchester City have secured a significant victory in their ongoing dispute with the Premier League, as a tribunal ruled that the original rules concerning associated party transactions (APTs) were “void and unenforceable.” This decision raises further uncertainty over the league’s regulatory framework, following the recent postponement of new squad cost control regulations.
The tribunal’s decision follows an earlier ruling that found three specific aspects of the APT rules, which were in effect between December 2021 and November 2024, to be unlawful. Both City and the league subsequently sought clarification on whether these flaws invalidated the rules in their entirety. The tribunal has now confirmed that the unlawful aspects cannot be separated from the rest, meaning the entire set of APT regulations from that period is unenforceable.
This outcome could lead to significant consequences, including the potential for clubs that previously had APT deals rejected under the invalidated rules to seek compensation. The ruling also raises concerns about the Premier League’s regulatory effectiveness at a time when broader governance changes, including the establishment of an independent football regulator, are being considered in parliament.
The Premier League has since introduced a new set of APT rules, which are not directly affected by the ruling. The league maintains that these updated regulations have addressed the concerns raised by the tribunal and remain valid. However, Manchester City have also challenged these new rules, and the tribunal is expected to review their legitimacy in the coming weeks. If the new regulations are similarly deemed unenforceable, it would further undermine the league’s ability to regulate financial transactions between clubs and their associated entities.
In response to the tribunal’s latest ruling, the Premier League reaffirmed its confidence in the new APT rules, stating that they remain in full effect and that clubs must comply with all aspects of the system, including submitting shareholder loans for fair market value assessment. The league is seeking a swift resolution to the matter to maintain stability within its financial regulations.
This legal battle comes amid heightened scrutiny on financial governance in English football, with an independent regulatory framework under discussion. Additionally, the outcome of the 130 disciplinary charges brought against Manchester City remains pending, further adding to the league’s complex legal and regulatory landscape.
