“Destroy the game?” Nonsense: The truth behind Man City’s legal action and the role of Arsenal, Liverpool, and Manchester United

The legal action taken by Man City Premier League could be a critical moment as the decision on 115 charges continues to be awaited.

Much of the football agenda this week has been dominated by Manchester City’s legal challenge against the Premier League.

The Premier League’s ‘unlawful’ Associated Party Transaction (APT) regulations were the subject of a lawsuit filed by City on Tuesday, in which they are pursuing damages. This is in addition to the 115 rule breaches that the Premier League has accused City of, and a hearing may be scheduled for later in the year.

The Blues have created a 165-page legal document in an effort to overturn APT rules that are designed to prevent the agreement of sponsorship deals by associated parties that exceed fair market value. The City contend that this is a violation of competition law. This information was reported by The Times.

It has elicited a significant amount of commentary; however, what is the reality at City and how is it perceived by its competitors? We consult with the professionals.

(MEN, Simon Bajkowski, Man City writer)
In essence, the 165-page legal document is a mystery to those who have not reviewed it, and it is incumbent upon us to be more informed. In 2018, it appeared that City was misrepresenting equity as sponsorship funding, as evidenced by disclosed emails. However, an actual court determined that there was no evidence to support this claim.

However, this did not halt the moralizing that ensued, and the same is still the case. We are uncertain as to whether City is attempting to completely invalidate APTs or if their legality complaint pertains solely to the most recent iterations that were implemented in February. Nevertheless, City has emerged as the Premier League’s antagonists, despite the fact that everyone is playing the game.

The language employed by City is disheartening, and it is a dismal reflection of the relationship between the Premier League and its champions that they are in such conflict. Additionally, it is disheartening that a significant number of individuals would prefer to see a financial regulation that was previously uninteresting to them remain as illicit (if it is), rather than for City to prevail.

This is also a niche issue, as City would still be required to comply with UEFA regulations, even if they were to completely overthrow APTs (which is improbable, given that they faced minimal opposition when they were first introduced, suggesting that this is a technical issue regarding a recent revision). Anyone who asserts that this single hearing will derail the game is simply unaware of the situation.

This is not a defense of City’s actions; however, it is difficult for me to launch an aggressive attack without a more comprehensive understanding of the evidence. It is evident that, regrettably, a significant number of individuals do not appear to be experiencing this issue.

Aaron Stokes (Newcastle Chronicle writer, Newcastle United)
Manchester City, the Premier League champions, have launched an all-out assault on the competition they currently dominate, and the impending legal dispute has the potential to involve their rivals in a contentious dispute. I, for one, earnestly wish that Newcastle United does not emulate this behavior.

Pep Guardiola’s team, which has won the title four times in the past five seasons despite allegations that they have violated Financial Fair Play rules 115 times, is currently aggressively challenging the league’s Associated Party Transaction [APT] rules, alleging that they are an attempt to “stifle their success.”

In an effort to prevent clubs owned by foreign wealth funds from inflating sponsorship agreements through companies they own in order to give clubs an unfair advantage, the Premier League only implemented the aforementioned rule following Newcastle’s 2021 Saudi-backed takeover. Newcastle’s financial situation could be significantly altered if the regulations were to be abolished. Newcastle have been compelled to adhere to FFP restrictions, despite the fact that Eddie Howe’s team is considered the wealthiest in the world by outsiders.

In the past few days, Newcastle has maintained a public silence on the matter, while varying reports regarding the north east outfit’s stance have emerged since City made their legal challenge public. The Magpies are alleged to be “sympathetic” to City’s cause, as they are also being impeded by new regulations that were implemented following the change of ownership on Tyneside. The St James’ Park hierarchy, as well as the likes of Chelsea and Manchester United, will undoubtedly be closely monitoring the situation.

Nevertheless, the elimination of APT regulations would alleviate a significant burden for Newcastle personally, but it would also have a detrimental impact on the state of top-tier football in the United Kingdom. It would render the Premier League’s profitability and sustainability regulations meaningless, as training kit or sleeve sponsors could essentially pay exorbitant amounts to unjustly promote the parties to which they are related. Clubs such as Newcastle and Manchester City have the potential to dominate their competitors and leave them in a state of disarray due to the absence of scrutiny in these agreements.

Upon hearing that final statement, some may exclaim, “Great!” However, the competition would become even more skewed toward the uber-rich clubs at the summit of the table. Is it not appropriate to express comparable indignation regarding City’s intentions in light of the recent controversy surrounding the potential closure of the European Super League?

Newcastle’s transition to new ownership was met with widespread condemnation from the football community. However, the club may have regained some of its supporters by maintaining Eddie Howe as its manager, enhancing the majority of its pre-takeover squad members, and adhering to the spending limit over the past three years.

City’s ability to prevail over the Premier League in their legal pursuits will likely be significantly influenced by Newcastle’s subsequent actions. Although I may be in the minority, I remain optimistic that they will decide not to engage in a tumultuous conflict that could have a detrimental impact on the sport of football.

Stephen Killen, a football correspondent for the Liverpool Echo,
The Premier League’s integrity has been a subject of controversy for several years, and the recent escalation of financial breach accusations has only served to exacerbate the apprehension surrounding the sport.

In the past few years, Liverpool has experienced success under Jurgen Klopp, which has fuelled a title-rivalry with Manchester City. Since the 115 allegations were disclosed, Manchester City has been plagued by an elephant in the room.

I believe that the situation is one of innocence until proven culpable. The legal action against the Premier League for the Associated Party Transaction rules has raised additional concerns about the sport we are familiar with. The top-flight governing body will be undermined, and there will be a free-for-all on sponsorship agreements to inflate and provide an uneven playing field if City is successful.

Premier League clubs have already engaged in internal disputes, and the potential for legal action against the governing body could represent a significant development in the sport. This is a moment that is both concerning and critical.

Tom Canton (Arsenal writer, Football London)
Patience is the term that has been most closely associated with Arsenal over the past five years. Whether it is in their approach to squad-building and competitive strategy or in the manner in which it has portrayed any of the legal disputes in which Manchester City is currently embroiled. This most recent development has not altered the Gunners’ stance, and although the sentiment toward City in North London continues to wane, Arsenal are content to remain in a state of anticipation, assuming that it has not already been entirely extinguished.

Mikel Arteta has consistently been eager to distance himself from the matter whenever he is questioned about it. In contrast to Jurgen Klopp, who has been vocal about the subject, Arteta has maintained a reserved demeanor. Who can blame him?

Upon being explicitly questioned about the 115 alleged financial breaches, he responded, “That is a matter for the authorities to address; it is not our responsibility.” “If they are engaged in play, it implies that they are permitted to do so and are entitled to do so.”

Arsenal has been able to progressively reduce the distance between themselves and their established title rivals, despite the noise. It has now been reduced to a mere two points, and although Arsenal is disappointed that they have not yet surpassed City at the club, there is a recognition that it is a matter of time if they continue on this path, irrespective of the off-field events in the Premier League.

Tyrone Marshall (Football journalist, MEN)
To ascertain the opinions of United, or United’s new minority shareholders and majority decision makers, regarding City, one need only examine their most recent appointments.

Ineos’ initial significant initiative was to recruit Omar Berrada from Manchester City to serve as the organization’s new chief executive. They recruited Jason Wilcox as technical director as a result of Berrada’s recommendation and their admiration for his work as academy director at the Etihad. The club’s new chief communications officer also served at City for eight years.

United is aware that they are drawing inspiration from the club they once referred to as their “noisy neighbors” in their efforts to restructure their football structure. In private, they will acknowledge that they are considering City for staffing needs due to their current status as the most successful football club in the industry.

It is evident that there is discussion among supporters regarding the accusations and the nature of City’s success. It is employed by United fans as a defensive mechanism to acknowledge the success that has been attained. It is also beneficial that they have defeated Liverpool in a few close title contests, as this is a much more acceptable outcome for United supporters.