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City lose the battle,, but have they lost the war?

 Manchester City tasted defeat in the civil war that has engulfed the Premier League after clubs approved changes to sponsorship rules.

To rub salt in City’s wounds, their former chief operating officer Omar Berrada, who is now the Manchester United chief executive, made the first critical interjection backing the Premier League over Associated Party Transactions (APTs).

Chelsea, who had previously supported City over APTs, were also among the 16 clubs to vote in favour of the Premier League proposal. Only Aston Villa, Newcastle United and Nottingham Forest joined City in voting against.

City had argued that no vote should take place, claiming the APT rules were void and unlawful after a tribunal decision on their legal challenge. Rival clubs are now waiting to see whether City carry out their threat to launch further legal action and cause more ructions in the league.

To promote competitive balance in the league, the APT rules put a limit on how much money companies associated with clubs can feed to them via sponsorship deals.

It is understood City’s position remains unchanged on the matter and they now await further clarification from the tribunal that heard their case against the Premier League and deemed certain aspects of the APT rules “unlawful”. That is due to be released in January.

Despite the amendments being voted through by a 16-4 majority, the defeated clubs are of the view that others were sympathetic to their position but ultimately sided with the Premier League amid concerns about their potential exposure around shareholder loans.

I also continue to think that Premier League rules are open to challenge under competition law.   The civil war could damage the standing of the competition and means more legal bills for all those involved.   Arguably the lawyers are the real winners.

Meanwhile, Pep Guardiola has said he will stay at City even if they are relegated.

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