Liverpool FC, along with the rest of the Premier League, are keenly watching the outcome of Manchester City’s legal battle against the Premier League’s Associated Party Transaction (APT) rules.
The ruling could have significant implications for the competitiveness and financial fairness of English football.
The APT rules, introduced in 2021, aim to prevent clubs from inflating commercial deals through companies linked to their ownership, according to the Liverpool Echo.
These regulations were implemented following Newcastle United’s Saudi-led takeover to ensure that sponsorship deals reflect fair market value, rather than giving certain clubs an unfair advantage through inflated income streams.
For Liverpool, this framework helps maintain a level playing field in the league, ensuring clubs with wealthy owners cannot simply bypass financial regulations to fund excessive spending.
Manchester City, however, have challenged these rules, arguing that they hinder their operations.
The club has taken legal action against the Premier League, claiming the rules were introduced to stifle their success, particularly under Pep Guardiola, who has led City to multiple Premier League titles since 2016.
City’s challenge, if successful, could have profound ramifications for Liverpool and other clubs, as it would effectively weaken the financial regulations that prevent wealthier clubs from dominating the transfer market through artificially boosted revenues.
Brighton & Hove Albion chairman Tony Bloom recently revealed that the decision from City’s private arbitration hearing is expected soon.
Bloom expressed concern that a ruling in City’s favor would not be “helpful” for the reputation of the Premier League, and could potentially damage the integrity of the league’s financial structure. His comments suggest that many clubs, including Liverpool, could be at a disadvantage if City’s challenge leads to a relaxation of the financial rules.
“I don’t want to talk too much about that because it has gone to arbitration and we are going to get a ruling on that soon. We [Brighton] are outsiders,” Bloom told The Athletic earlier this month.
“Each club, legally, are able to do that. I don’t think it’s great for the reputation of the Premier League, but these things happen. We have to see how the legal process develops. I don’t think it will be helpful for the Premier League to lose the case, but we are going to find out the outcome soon.”
For Liverpool, maintaining the APT regulations is essential in keeping financial fairness across the league. With Liverpool’s approach focused on sustainable growth and player development rather than excessive spending, the weakening of these rules could increase the financial gap between clubs.
A City victory in this legal case could lead to a system where the richest clubs are able to strengthen their dominance, diminishing the competitive balance that makes the Premier League so exciting.
Additionally, Manchester City are also facing 115 charges from the Premier League related to alleged financial breaches, which will be heard by an independent commission this month.
The outcome of these cases will be pivotal in shaping the future landscape of English football, with Liverpool and other clubs waiting to see how it unfolds.
