In a letter to the Premier League and the 19 other top-flight clubs, City criticized the league’s summary of the case, alleging it contained “several inaccuracies.” The letter, which was obtained by the BBC, was sent by City’s general counsel Simon Cliff on Monday.
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Both parties have claimed victory following the arbitration panel’s ruling, which was made public on Monday after City’s legal challenge against the Premier League’s Associated Party Transaction (APT) rules.
City, owned by the Abu Dhabi-backed City Football Group, had some of their complaints upheld, with two elements of the APT rules being deemed unlawful by the tribunal. The club has stated that their legal action “succeeded.”
However, the Premier League also welcomed the tribunal’s findings, emphasizing that the majority of Manchester City’s challenges were dismissed, and the tribunal “endorsed the overall objectives, framework, and decision-making of the APT system.”
APT rules are designed to ensure that sponsorship deals with companies linked to club owners are conducted at fair market value.
While City have not commented publicly on the letter, the Premier League has also refrained from making a formal statement. However, a senior source told BBC Sport that the league rejects any suggestion that its summary of the ruling was misleading or inaccurate.
A consultation with Premier League clubs is now underway, with a meeting scheduled for next Thursday to discuss the aftermath of the case, though no vote will take place at that time.
It’s important to note that this case is separate from the Premier League’s disciplinary commission, which is set to hear 115 charges against Manchester City for alleged breaches of financial regulations, some dating back to 2009. City deny any wrongdoing.
In the letter, Cliff offered “clarifications” to “assist member clubs with their understanding” in response to a summary of the panel’s ruling by Premier League chief executive Richard Masters.
“Regrettably, the summary is misleading and contains several inaccuracies,” Cliff claims.
“The tribunal has declared the APT rules to be unlawful. MCFC’s position is that this means that all of the APT rules are void,” the letter states.
“The decision does not contain an ‘endorsement’ of the APT rules, nor does it state that the APT rules, as enacted, were ‘necessary’ in order to ensure the efficacy of the League’s financial controls.”
The Premier League, in its summary, said that the tribunal identified “a small number of discrete elements of the rules which did not in their current form comply with competition and public law requirements” and that these could “quickly and effectively be remedied”.
However, the league’s position that City were unsuccessful in the majority of its challenge is described by Cliff as “a peculiar way of looking at the decision”.
He added: “While it is true that MCFC did not succeed with every point that it ran in its legal challenge, the club did not need to prove that the APT rules are unlawful for lots of different reasons. It is enough that they are unlawful for one reason.”
Cliff added that it was “not correct that the tribunal’s decision identifies ‘certain discrete elements’ of the APT rules that need to be amended in order to comply with competition and public law requirements”.
He added: “On the contrary: the APT rules… have been found to be unlawful, as a matter of competition law and public law. This means that they are void and not capable of enforcement. This has very significant consequences for APTs that have been entered into to date and APTs that are currently being negotiated by clubs.
“Of even greater concern, however, is the PL’s suggestion that new APT rules should be passed within the next 10 days.”
The Premier League is seeking to amend its rules within the next fortnight so that they comply with competition law.
The tribunal – in a 175-page document – ruled that low-interest shareholder loans from owners to their clubs should not be excluded from the scope of APT rules, and that some amendments to toughen up the rules in February by should not be retained.
However Cliff warns that it is “remarkable that the Premier League is now seeking to involve the member clubs in a process to amend the APT rules at a time when it does not even know the status of those rules”.
He added: “We will be writing separately about this to the Premier League but in the meantime, given the findings in the award, this is the time for careful reflection and consideration by all clubs, and not for a knee-jerk reaction.
“Such an unwise course would be likely to lead to further legal proceedings with further legal costs. It is critical for member clubs to feel that they can have trust in their regulator.”
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