No Relegation Anymore! Official: Manchester City Successfully Challenges the Premier League; APT Rule Deemed Illegal

Manchester City has released an official statement confirming that the club’s challenge against the Premier League has been successful. The previously imposed APT rule (related-party transactions) was accused of being illegal. The Premier League was alleged to have abused its power, and the court has overturned the Premier League’s decision due to an illegitimate process marked by bias, resulting in an unlawful ruling.

According to The Daily Mail, Manchester City has achieved a significant victory in its legal battle with the Premier League after new sponsorship agreement rules were deemed “illegal.” A heavyweight panel composed of retired judges made a landmark ruling that will send shockwaves through the top flight, stating that the regulations (APT) aimed at preventing clubs from engaging in inflated transactions with companies associated with their owners violated the Competition Act. Additionally, the Premier League’s actions to block two recent deals by Manchester City were found to be incorrect.

Previously, Manchester City faced 115 charges of violating the Premier League’s financial rules, leading them to sue the Premier League earlier this year. They claimed that the rules, revised in February following the Saudi Arabian tycoon’s acquisition of Newcastle United, were unfair.

The Mail reports that what happens next remains to be seen. Manchester City is expected to seek compensation, while the Premier League may need to amend or entirely abandon the clause. If other clubs feel they have been affected, they might also seek compensation.

Previous reports suggested that if these allegations were proven true, Manchester City could face relegation. Now, not only can the Premier League not punish Manchester City, but it may also need to compensate both Manchester City and other clubs.