Manchester City have won an important court victory against the Premier League, but while many thought it was about 130 charges of breaching Financial Fair Play, it quickly became clear that this was not the case.
This time, the sponsorship rules that applied in the period from 2021 to 2024 were declared invalid.
This is Related Party Transactions (APT), a rule that was intended to prevent clubs like City or Newcastle from making financial gains through lucrative sponsorship deals linked to their owners.
Inflated sponsorship deals, far above market value, were used to inject money into the club's finances, explained Spanish outlet Marca.
The court ruled in early October, through an independent panel, that the Premier League had unlawfully blocked two sponsorship deals for Manchester City. However, Premier League chief executive Richard Masters argued at the time that the court had in fact "upheld" the APT rules and had merely found "certain elements that needed to be changed".
However, the court ruled again and ruled in favor of City, who accused the Premier League of "misleading" other clubs.
"The APT rules were completely illegal," the Daily Mail reports.
This ruling could have serious consequences for the Premier League's finances - with the expected cost of covering all the costs of the trial estimated at around €24 million.
And, in addition, City could also claim huge damages from the Premier League.
"Any contract that was rejected or had its value reduced under the APT system could now be subject to large compensation payments. If a club believes its competitive performance was compromised by a decision made under the previous APT system, it could also file a lawsuit," the British newspaper concludes.
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