Liverpool were one of eight clubs to back the Premier League in their recent case against Man City over sponsorship rules.
On Monday, it was widely reported that City had achieved a ‘major victory’ against the Premier League over legal action pertaining to the associated party transaction (APT) rules.
The reigning top-flight champions cited that the rules, which are designed to ensure commercial deals linked with club owners are done for fair market value, were anti-competitive.
Ultimately, City were “unsuccessful in the majority of (their) challenge,” although their statement of events have seen them claim victory with an “unlawful” ruling.
The tribunal supported the legitimacy of the rules but did find three areas where they were unlawful or unfairly reached decisions – not the sweeping victory some suggest for City!
As part of the proceedings, Liverpool were one of eight clubs to give evidence that supported the Premier League‘s position – Arsenal, Man United, West Ham, Brentford, Bournemouth, Fulham and Wolves all did the same.
The 175-page document (which can be read here) lists the aforementioned clubs while also naming Everton, Chelsea and Newcastle as witnesses for City.
Our Merseyside neighbours stick out like a sore thumb. Nottingham Forest, meanwhile, were also reported by the Telegraph to be “celebrating City’s successful challenge.”
Does the ruling impact Liverpool?
The notable result of this case is that it was ruled unlawful for shareholder loans to be excluded from the league’s profit and sustainability rules (PSR).
Liverpool have utilised this under FSG and, as per the Telegraph, the club currently owe the owners £137 million.
There is no danger of any repercussions for this as the rule change will only apply to shareholder loans taken out after it comes into effect.
It essentially means that clubs are expected to face paying commercial interest rates to their owners or having the equivalent figure added to their outgoings for PSR.
Chelsea and Everton are two clubs to have used significant loans from their owners and yet they were fully behind Man City.
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