Man City are currently embroiled in a legal battle with the Premier League over Associated Party Transaction rules, with a growing number of clubs supporting their cause
A flag bearing the Premier League logo
Premier League clubs including Everton and Liverpool could face an immense financial fallout due to a looming civil war within England’s elite division. Several teams are backing Manchester City’s challenge against the league’s Associated Party Transaction rules – which an independent tribunal deciding that the current rules are non-compliant with UK competition law – concerns are escalating.
The conflict has intensified, with City also engaged in a legal dispute over 115 claims of inaccurate financial submissions, a case that started three weeks ago and may extend another two months. Moreover, Everton and Nottingham Forest previously lost points for breaching Profit and Sustainability Rules, igniting costly legal confrontations.
As per Mirror Football, reputational risks could play havoc, according to top sports lawyer Simon Leaf of Mishcon de Reya, as clashes threaten the Premier League’s brand, possibly translating into diminished appeal for broadcast partners and sponsors. Leaf expressed his apprehensions, saying: “If the Premier League is seen fighting constant legal battles with its member clubs then that does serious damage to the brand.”
He highlighted the prestige of the league, adding: “This is a league that is seen as one of the country’s crown jewels. It is the envy of all the other leagues around the world.”
The implications, he suggests, may not be immediate but undeniable, pointing out: “The damage might not happen overnight, but when the game is being played out in court rooms rather than on the pitch then it isn’t the kind of thing that sponsors and broadcasters will want a piece of.
“There will be damage to the brand that you can’t put a number on at the moment. It is often said that there is no such thing as bad news – but ultimately when it comes to external sponsors, especially from overseas, looking at who they want to partner with there maybe more of a temptation now to perhaps go with La Liga rather than the Premier League.
“A civil war like this really isn’t good for business. It brings the Premier League into disrepute.”
The Premier League currently enjoys a hefty income from global TV rights, banking over £3.5 billion a year. With a new domestic deal with Sky and TNT on the horizon, worth £6.7 billion over the next four years, the league’s financial health seems robust—significantly outstripping La Liga’s earnings and almost £3 billion more than the Bundesliga.
