Man City victory as Premier League’s sponsorship rules declared unlawful
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Two deals with Etihad and First Abu Dhabi Bank deemed to have been ‘unfairly blocked’ in landmark decision which will spark huge concern among rival clubs
The key facts
Rules deemed unlawful because they did not take into consideration interest-free loans from shareholders to clubs
Likely change in the regulations could lead to City striking more lucrative deals and seeking damages from the Premier League
Clubs with high levels of borrowing now in danger of breaching of Profitability and Sustainability Rules
Arsenal, City’s title rivals, have borrowing of more than £200million made up entirely of shareholder loans
Premier League’s stance was backed by Arsenal, Manchester United, Liverpool, West Ham United, Brentford, Bournemouth, Fulham, and Wolverhampton Wanderers
Manchester City have inflicted a potentially damaging defeat on the Premier League after the rules governing commercial deals between clubs and related companies were declared unlawful.
In a landmark decision that could have huge ramifications for England’s top flight, it was ruled that City were unfairly blocked from agreeing two huge sponsorship deals earlier this year.
It opens the door for the English champions, majority-owned by Abu Dhabi, to strike significantly higher sponsorship agreements with associated parties than previously allowed — including with Etihad, their stadium and shirt sponsor — and to pursue compensation and costs from the Premier League for abusing its position. Other clubs could also now seek damages should they believe they have been impacted.
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