“The club was successful: the Associated Party Transaction (APT) rules were found to be unlawful and the Premier League’s decisions regarding two specific MCFC sponsorship transactions were overturned.”. In a press release published last Monday, Manchester City – which must also answer 115 charges as part of a trial for circumventing the rules of financial fair play – celebrated a first victory. The one concerning sponsorship rules. As a reminder, the Cityzens accused the leaders of the all-powerful English championship of having derailed three very important sponsorship agreements with the Etihad Aviation Group, the First Abu Dhabi Bank (FAB) and the Emirates Palace.
The Premier League multiplies legal battles
If the Premier League had based itself on the rules of the APT (Associated Party Transaction) in order to prevent City, owned by Abu Dhabi, from benefiting from overly juicy contracts signed with companies from the same country as the bosses of the club, the three independent judges linked to this case ultimately concluded that these rules were simply illegal. A decision which will therefore allow the Mancunian team to renegotiate sponsorship contracts as it wishes and which could, at the same time, have major consequences for several Premier League clubs (Everton, Brighton, Arsenal, Chelsea, etc.).
Supported in its approach, the citizen club will also have to defend itself regarding 115 allegations of failure to provide precise financial information in a separate case which began three weeks ago and is expected to last at least two more months. A new legal battle to come coming a few weeks after the sanctions imposed on Everton and Nottingham Forest, penalized with a withdrawal of points for not having respected the rules of profit and sustainability. So many legal wars which could also have serious repercussions on the image of the PL.
A future impact on sponsors and broadcasters?
Questioned on this subject, Simon Leaf, lawyer specializing in sport and partner at the international law firm Mischon de Reya, noted in this sense the possible consequences on the ability of the English championship to negotiate future agreements with broadcasters and sponsors. “If the Premier League is seen waging constant legal battles with its member clubs, it does serious damage to the brand”the specialist was first alarmed in the columns of The Mirror. And to continue: “It’s a League that is considered one of the crown jewels of the country. The damage may not happen overnight, but when the game is played in courtrooms rather than on the field, it’s not a good thing for sponsors and broadcasters..
And to conclude with an alarming projection: “There will be damage to the brand that we cannot quantify at the moment. It is often said that there is no such thing as bad news, but ultimately when it comes to external sponsors, particularly foreign ones, looking to partner, the temptation is perhaps greater today. today to opt for La Liga rather than the Premier League. Such a civil war is definitely not good for business. It brings the Premier League into disrepute.. As a reminder, the Premier League currently receives more than 3.5 billion pounds sterling (4.1 billion euros) per year from global television rights. A new national agreement with Sky and TNT, worth £6.7 billion (€8 billion) over four years, will also come into force next season. That’s £2 billion more than La Liga currently earns and almost £3 billion more than the Bundesliga…
