The Premier League has descended into open civil war, with over half the clubs stunned by the nature of Manchester City‘s email following the judgment on their case against the competition’s Associated Party Transactions. Some executives are particularly annoyed by threats of further legal action, and the situation has been described by numerous sources as “seriously escalating” ahead of next Thursday’s meeting.
City’s general counsel, Simon Cliff, wrote in an email to all 19 clubs that the Premier League’s 1,200-word summary of the judgment was “misleading” with “inaccuracies”, while stating that City’s “position is that this means that all of the APT rules are void, and have been since 2021”.
The Premier League’s legal advice is that this is absolutely not the case, and the rules can be easily and quickly amended through forthcoming meetings, starting next Thursday. There, the clubs will discuss three potential changes to the laws. The mood is expected to be extremely tense, especially with City strongly resisting any attempt to push changes through in what they would see as a “knee-jerk” way.
Cliff’s email added: “Such an unwise course would be likely to lead to further legal proceedings with further legal costs. It is critical for member clubs to feel that they can have trust in their regulator.”
This is said to have infuriated a high number of clubs, while even causing surprise in some of those that had more sympathy to City’s position. Clubs that acted as witnesses for the repeat champions were Chelsea, Newcastle United and Everton, with Nottingham Forest and Aston Villa known to be at least more understanding of their views.
While Newcastle’s stance is expected given that the disputed amendments were specifically brought in after the Public Investment Fund’s takeover of the club in October 2021, the potential rule changes after Monday’s judgment may affect Chelsea. There is also wonder in the Premier League over whether Everton’s change of ownership to the Friedkin Group will alter the outlook at Goodison Park. All of Manchester United, Liverpool, Arsenal, Tottenham Hotspur, Brighton and West Ham United meanwhile offered witness testimony for the Premier League.
Clubs will only discuss potential amendments next Thursday, with proposals then going to the league financial group and its legal advisory group before any final vote. City are understood to be highly resistant to changes that would rule out backdating fair market value tests to shareholder loans, which was one of the primary outcomes of Monday’s judgment.
While this will all take place behind closed doors, clubs have been worried that the “toxic” way much of this is playing out in public is damaging the reputation of the Premier League. “Clubs are fed up,” were the words of one source.
There is also a wider political context there, given that Culture Secretary Lisa Nandy will hold talks with Premier League clubs over the government’s plans for an independent regulator on Wednesday. Some football officials feel the entire controversy – and especially how the Premier League was found wanting on process for the second successive judgment after Leicester City – only further illustrates a competition that “can’t govern itself” and is “out of control”.
The strength of feeling has certainly never been higher, and all this with the actual outcome of the City hearing to come in the new year.
