COURT ORDER
Man City launch new legal battle against Premier League two weeks before landmark hearing
Scroll down to read the letter sent to clubs
MANCHESTER City launched another legal battle against the Premier League - as they want the LATEST sponsorship rules declared ILLEGAL.
City’s pre-emptive strike was initiated last month ahead of this week’s hearing into their challenges against the previous set of Associated Party Transaction rules.
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Prem and City lawyers argued their case at a two day Arbitration hearing which is due to determine whether the regulations which were declared “unlawful” in the autumn have been fixed by the changes voted in by a 16-4 majority vote of clubs in November.
City are arguing that the declaration by the panel that the rules as they previously stood were “unlawful” meant that they could not just be adjusted by the “tweaks” approved by the club after Prem bosses took independent legal advice.
But now Prem chief executive Richard Masters has told the 20 clubs that City have begun separate proceedings which call into question the legitimacy of the entire rulebook relating to the deals.
Associated Party Transactions - APTs - are commercial contracts entered into by clubs with companies related to their owners.
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In November, Prem bosses persuaded Chelsea, Everton and Wolves to change sides and back the new regulations, which allowed owners to convert previous “shareholder loans” into shares in their clubs.
City wanted ahead of the vote that a decision not to look retrospectively at the loans - often at low or zero interest rates - would not be legally viable.
That is understood to be the thrust of the latest legal move, with Lord Pannick KC understood to again be leading City’s legal arguments.
In his letter to clubs - issued ahead of next week’s two day “shareholder” meeting, likely to be an even feistier affair given the anger brewing between the two sides - Masters explained: “Manchester City FC seeks a declaration that the amendments approved by clubs in November (and therefore the current APT rules in force) are unlawful and void.
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“The Premier League remains strongly of the view that the amendments passed in November were lawful and the APT rules comply with all competition law requirements.
“We consider that the new arbitration must be resolved as soon as possible and, to that end, have agreed that the same tribunal should be appointed to hear the new case.
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“The parties are currently corresponding in relation to further directions.
“Meanwhile, the APT rules remain in full force and effect and clubs remain required to comply with all aspects of the system.”
What will happen to Man City?
MAN CITY began the season as favourites to win the Premier League title yet again – but there is one elephant in the room that threatens to put the skids under the Etihad giants.
Sunsport’s MARTIN LIPTON discusses what the next few months could hold with Head of Sport SHAUN CUSTIS....
Custis: So the big question – will there be a resolution this season?
Lipton: Yes…. probably! It will take at least a month to go through the evidence. So I suspect around March, April time, we will get a result. But that’s where it starts to get tricky.
Custis: Why is that?
Lipton: If the result is in City's favour, that's the end of the matter. They will be cleared. They will have no punishment to face.
But if City are found guilty, these will be the heaviest penalties ever imposed by the Premier League.
I suspect if they are found guilty, they will be expelled from the league or given a massive points deduction and a huge fine so that they're not in the Premier League next season.
Check out the full discussion on Man City's future.
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