The Man City court case has taken a new turn after an “unlawful” letter was sent to Premier League rivals ahead of a crucial vote.
Manchester City reportedly sent a letter to Manchester United and other Premier League clubs expressing concerns over proposed changes to financial regulations ahead of next week’s vote. The club, which is said to have sent the letter to all Premier League clubs and the Football Association, claims that the proposed amendments to Associated Party Transaction (APT) rules are “unlawful.”
Both Manchester City and the Premier League celebrated a ruling in October from a commission that recognized the need for APT governance but also found that parts of the framework violated EU competition law. This led the Premier League to revise its APT policies.
A letter obtained by the BBC indicates that Simon Cliff, Manchester City’s chief legal officer, argues that the revised proposals still violate the commission’s ruling. He also criticized the rushed consultation process by the Premier League, claiming that clubs would be “voting blind.” The letter states that the new rules must be “fair, considered and legal” to avoid costly future legal disputes, urging the Premier League to get it right this time.
In response to City’s concerns, the Premier League strongly rejected the accusations, asserting that it has acted fairly, transparently, and responsibly in its consultation process. The league emphasized that it had consulted widely and carefully considered feedback from clubs, including Manchester City.
The Premier League also reaffirmed its commitment to complying with legal obligations, particularly in light of a recent commission ruling that requires “shareholder loans” to be included in spending limits. These loans will now count as costs and be subject to interest rates, marking a significant policy change. However, the Premier League proposes that interest charges should not apply to loans made before the new rules are ratified, a stance that Manchester City argues could lead to “market distortions” and is “not lawful.”
Manchester City has stressed the need for more dialogue and caution, suggesting that rushing the amendments could entail legal risks. The Premier League, however, rejected the notion that the consultation process was flawed, dismissing City’s legal threats as meritless.
After winning their fourth consecutive Premier League title in the 2023/24 season, Manchester City now faces an offseason of legal and regulatory challenges, while also turning their focus to the trans
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