Manchester City and the Premier League both declared victory after a legal case involving owner APT rulings.
Everton could pursue compensation following Manchester City’s legal case against the Premier League, according to a sports lawyer. The case revolved around the Associated Party Transaction (APT) rules, which aim to prevent clubs from inflating revenue through owner-related deals. City had two sponsorship deals blocked under APT regulations but successfully argued that shareholder loans, often offered at low or zero interest, should not be excluded from APT rules.
Everton, which has £451 million in shareholder loans, was previously hit with an eight-point deduction for breaching the Premier League’s profit and sustainability rules (PSR), while Nottingham Forest lost four points. The APT rules were introduced in December 2021, replacing Related Party Transactions (RPT) amidst Newcastle United’s takeover by Saudi Arabia’s Public Investment Fund.
Legal experts now suggest that if the Premier League reverts to RPT rules, clubs like Everton and Nottingham Forest could seek compensation for punishments imposed under what may be considered an “unlawful regime.” Manchester City may also challenge the current APT rules, pushing for changes that would include shareholder loans retroactively, which could lead to further disputes within the Premier League.