Man City to fail in Premier League battle after shock twist

Since winning an unprecedented fourth consecutive Premier League just last month, Manchester City have been in the news for blazing a trail for all the wrong reasons.

The Cityzens have launched an astonishing legal action against the Premier League in an attempt to end Associated Party Transaction (APT) rules which they claim are unlawful.

These rules forbid related companies such as Etihad Airways sponsoring a team backed by Abu Dhabi, from injecting cash above the commercial rate determined by an independent assessor. Hence, Man City claim they are being held back by the rules which were designed to prevent clubs from financial doping.

The Premier League’s voting structure to approve new rules requires a super-majority of 14 clubs and City describes this as “the tyranny of the majority” which limits their freedom to make money on sponsorship deals.

City claim that these legacy clubs want to monopolize success at their expense and the extraordinary legal case is being heard over a two-week hearing that started on 10 June, with the result not publicised at the time of writing.

Meanwhile, Everton’s former chief Keith Wyness has claimed Man City will fail in this legal challenge against the Premier League.

Speaking on a new edition of Football Insider’s Inside Track podcast, Wyness, who served as CEO at Goodison Park between 2004 and 2009 claimed the process is a “distraction” from their alleged 115 financial breaches.

Of course, all of this is happening amidst the backdrop of the 115 charges City are facing for allegedly breaching sponsorship rules and their hearing against the Premier League could blow a big dent in their FFP case taking place in November. This PSR lawsuit against City will run for approximately six weeks and it promises to unearth some uncomfortable truths beneath the surface.

Wyness claimed it would be “very hard” for an arbitrator to reverse rules which have been in place for 32 years.

He told Football Insider‘s Insider Track podcast: “I don’t think they’re going to be successful with this new challenge.

“It’s based around competition law, and it’ll be very hard for the arbitrator to come out and say that the rules which have been in place since 1992 are anti-competitive.

“They use the phrase ‘tyranny of the majority’, referring to the fact that two-thirds of the clubs have to vote something through.

“I just don’t get that. It sounds like democracy, a very fair way to do it. And that’s been proven over years, producing the best league in the world.

“I don’t think the arbitrator will find against the Premier League at this stage.

“But it’s going to take up more resources, more time, and distract from the 115 charges City face.

“My cynical view is that it’s a distraction from those charges.

“It’s a very dangerous road they’re going down. It’s exploding the whole voting system in the Premier League.

“It really is a frustrating position to be in.”

Yet, Saudi-owned Newcastle are also prepared to submit documents in support of Man City who are owned by the state of Abu Dhabi.

The introduction of the APT laws in 2021 was prompted by Newcastle’s takeover to ensure that sponsorship deals between affiliated bodies would not be inflated beyond their actual market value, thereby giving the club more wiggle room within PSR.

Repercussions at the bottom of the food chain 

Man City’s stunning legal challenge feels like a threat to the English game as if successful, it will blow up the rules determining the fair value of commercial deals and any semblance of a level playing field financially.

More importantly, it poses a great risk to the football pyramid in England as this legal issue was one of the key factors in the Premier League’s failure to agree to a financial deal that is vital for the future of the English Football League (EFL).

EFL clubs are hoping to receive an extra £150million per season over six years from the Premier League under the so-called “New Deal For Football”, in addition to the existing £110million in solidarity payments and £40million in youth development funding. But the negotiations among top-flight clubs collapsed only a few weeks after City filed their claim against the Premier League on February 16.

Other Premier League clubs are reluctant to commit extra funds to the EFL if the financial rules limiting spending in the Premier League are deemed unlawful. If they have to spend more to try to keep pace with clubs like City, then it is even more important to hold on to their funds.

In fact, between 10 to 12 clubs have opposed the new deal for the lower divisions.

Wyness’ comments will cause a sigh of relief as the legal battle between Man City and the Premier League will go on over the coming months. This will in no way affect the demand for Manchester City tickets.

If City are thus unsuccessful in their legal battle and found to have breached FFP rules, they will be set for significant punishment. There may be points deductions, transfer bans and expulsion from the English top flight, while it’s also been suggested that they could seek solace in the European Super League if they are expelled from the Premier League.

Meanwhile, Juventus have recently pulled out of the controversial competition as Real Madrid and Barcelona remain the only pioneer participants. This opens up an opportunity for City to join but former Man City financial adviser Stefan Borson has rubbished those suggestions, labelling it a “nonsense story”.

“I think it falls into that category of somebody briefing,” Borson told Football Insider’s Sean Fisher.

“There is no Super League, so that’s the starting point.

“Secondly, it’s likely by the time all of this situation is resolved, the independent regulator will be able to prevent clubs from leaving the Premier League and entering other competitions.

“I think it’s just not going to happen.

“It’s just a nonsense story.”

These legal squabbles will have seismic effects on the entire Premier League, and Man City have a multitude of legal and public relations actions ahead.

What are the 115 charges against Man City?

Following a four-year probe into their conduct between 2009 and 2018, Man City were charged with breaching FFP rules with at least 115 charges. The BBC list these as:

• 54x Failure to provide accurate financial information 2009-10 to 2017-18.

• 14x Failure to provide accurate details for player and manager payments from 2009-10 to 2017-18.

• 5x Failure to comply with UEFA’s rules including Financial Fair Play (FFP) 2013-14 to 2017-18.

• 7x Breaching Premier League’s PSR rules 2015-16 to 2017-18.

• 35x Failure to co-operate with Premier League investigations December 2018 – Feb 2023.

The crux of this, is accusations such as fictitious sponsorship deals, and paying players and managers more than stated through other channels to get round Financial Fair Play restrictions. But hopefully in time, judgement will be made on Mancheater City.

How many trophies have Man City won under the UAE based Abu Dhabi United Group?

The Abu Dhabi United Group purchased Manchester City in August 2008. Since then they have won 23 trophies listed below.

Although I am delighted to point out I was at the Withdean Stadium Wednesday 24th September 2008, to watch (then League One) Brighton beat the newly minted Manchester City in the Carabao Cup Second Round. That team included Schmeichel, Zabaleta, Dunne, Ben Haim, Kompany, Ireland, Sturridge, Jo, Elano, Garrido, Caicedo and Hamann.