A tribunal has decisively ruled that the Premier League’s rules governing sponsorship deals for the period between 2021 and 2024 are “void and unenforceable.”
Last year, an independent arbitration panel found significant flaws in the league’s Associated Party Transaction regulations (APTs) following a lawsuit initiated by Manchester City.
The Premier League maintains that this ruling does not affect the “valid operation” of the current APT rules, which it asserts are still “valid and enforceable” and remain in “full force.”
These rules were established by the Premier League to prevent clubs from gaining financial advantages through commercial deals with companies connected to their owners, particularly those valued above “fair market value.”
In November, the Premier League successfully voted to amend these rules despite opposition from Newcastle, Nottingham Forest, Aston Villa, and Manchester City.
It’s important to note that Friday’s ruling does not address the November amendments, which continue to stand and are currently subject to a legal challenge.
The tribunal’s conclusion clearly states: “In the first partial final award, it was declared that the APT rules and amended APT rules were unlawful in three respects.”
The question now at hand is whether the three identified respects can be separated from the remaining APT rules, thus allowing those remaining rules to remain valid and enforceable.
The tribunal has determined that the three respects in which the APT rules and amended APT rules were deemed unlawful cannot be severed. Consequently, the entirety of the APT rules is rendered void and unenforceable.
In response, the Premier League stated: “This decision does not affect the valid implementation of the new rules.”
The tribunal made no determinations regarding the validity and effectiveness of the new rules. It is clear that whether the club benefits from this decision hinges on the outcome of the second challenge they issued last month regarding the legality of the new APT rules.
The League maintains its firm belief that the new APT Rules are valid and enforceable and is committed to achieving a swift resolution to this matter.
The new APT rules remain fully in effect, and all clubs are mandated to comply with every aspect of the system, including the requirement to submit shareholder loans to the Premier League for fair market value assessment.