Manchester City has accused the Premier League of misleading its member clubs about the outcome of a landmark legal case concerning the league’s associated party transaction (APT) rules. In a letter sent to all 19 top-flight clubs, City’s general counsel, Simon Cliff, criticized the Premier League’s summary of the case verdict, claiming it contained several inaccuracies. Both City and the Premier League have claimed victory after the arbitration panel’s ruling on Monday.

The legal dispute centers on the Premier League’s APT rules, which regulate commercial deals between clubs and companies linked to their owners. City’s legal action challenged the rules, and the tribunal found two aspects of the APT regulations unlawful. City claims this outcome invalidates the entire set of APT rules, while the Premier League maintains that only minor adjustments are needed. The Premier League is now seeking to amend the rules to comply with competition law.

In the letter, City stated that the tribunal did not endorse the APT rules, as the Premier League had claimed, and emphasized that the ruling had significant consequences for past and current sponsorship deals. Cliff also warned against rushing to amend the APT rules, cautioning that any knee-jerk reactions could lead to further legal proceedings and costs for clubs. He urged for careful consideration and reflection by all parties before making changes.

The Premier League has dismissed City’s accusations, with a senior source rejecting claims of inaccuracies in its summary. The league is working to amend the rules within the next fortnight, but City’s legal team is concerned about the fairness of applying the rules retroactively to past sponsorship deals while excluding previous shareholder loans from the scope of APT regulations. This could lead to further disputes and potential compensation claims from City.

This dispute marks an escalation in tensions between Manchester City and the Premier League, as City continues to challenge financial regulations. With 115 charges related to financial rule breaches still looming over the club, the outcome of this APT case could have broader implications for the ongoing legal battle, further exposing the divisions among Premier League clubs over financial regulations.