Source: REUTERS/Lee Smith
[Saba Sports News] According to British media reports, the APT rules governing commercial transactions between Premier League clubs and related companies have been ruled illegal, potentially impacting Manchester City. In this landmark decision that could have significant implications for England’s top league, it involves two major sponsorship agreements between Manchester City and Etihad Airways and Abu Dhabi First Bank this year. The Premier League will invite all 20 clubs to an emergency meeting next week to discuss the ruling and how much the relevant rules need to be changed. This legal ruling opens the door for the Premier League champion team majority-owned by Abu Dhabi to reach sponsorship agreements far exceeding previous allowances and seek compensation from the Premier League if other clubs feel affected. Of the total £4 billion loan amount across the Premier League, £1.5 billion comes from loans by club owners and shareholders. If rules change and commercial loan rates now apply to these interest-free loans and must be included in calculations regarding club profitability and sustainability, many clubs may find themselves in violation of profitability and sustainability rules (PSR).