A tribunal has ruled that the Premier League's sponsorship regulations between 2021 and 2024 are "void and unenforceable," dealing a significant blow to English soccer's top flight.
The ruling stems from a lawsuit initiated by Manchester City challenging the league's Associated Party Transaction (APT) regulations. These rules were designed to prevent clubs from benefiting from commercial agreements with owner-linked companies that exceeded fair market value.
Last year, an independent arbitration panel found against certain aspects of these regulations. Despite opposition from several clubs including Manchester City, Newcastle, Nottingham Forest, and Aston Villa, the Premier League proceeded to vote through amendments to these rules in November.
The tribunal's conclusion was definitive: "The three respects in which the APT rules and amended APT rules were unlawful cannot be severed with the result that the APT rules as a whole are void and unenforceable." While Friday's ruling does not affect the November amendments, which remain subject to a separate legal challenge, it invalidates the previous regulatory framework.
The implications of this decision are far-reaching. Industry sources suggest this could expose the Premier League—and by extension its member clubs—to potential damages claims worth tens of millions of pounds. Any club that had cases heard under these rules may now be in a position to seek compensation.
The ruling also places Premier League Chief Executive Richard Masters under increased scrutiny, particularly given that he confirmed the November changes despite warnings from Manchester City and Aston Villa among others.
This development marks a significant shift in the Premier League's ability to regulate club sponsorship deals and raises questions about the enforcement of financial regulations in English football's top tier.
