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Man City sue Premier League over financial rules – the key questions

Manchester City, who last month won a fourth successive Premier League title, are suing the league over its financial rules, the Times

Manchester City, who last month won a fourth successive Premier League title, are suing the league over its financial rules, the Times reported on Tuesday.

What has happened?

Back in February, Premier League clubs were told at a shareholders’ meeting that one of their number had issued a legal threat in relation to the league’s associated party transaction (APT) rules, which were first introduced in December 2021 in the wake of the Saudi-led takeover of Newcastle.

It was reported at the time that City were the club who had issued the threat, and on Tuesday the Times reported full details of City’s claim, which it said would be aired at a hearing starting on Monday.

What are the rules City are reported to be challenging?

85 The percentage of revenue clubs will be allowed to spend on squad costs under new rules set to be introduced in shadow form next season

The APT rules are designed to ensure that any commercial deal or player transfer between a club and entities with links to that club’s ownership are conducted at fair market value, so that club revenues are not artificially inflated.

A club’s declared revenue is a crucial component in calculating compliance with the league’s current profitability and sustainability rules (PSR) which allow a maximum loss of £105million over a three-year assessment period. Revenue will remain critical in determining how much a club can spend on squad costs under new rules set to be adopted by the Premier League in shadow form for next season, and under rules already introduced at European level by UEFA.

What is reported to be the basis of City’s challenge?

The Times says the club’s legal claim challenges the validity of the APT rules from a competition law perspective. It is reported that the claim says City are the victims of “discrimination” in relation to these rules and are subject to a “tyranny of the majority” in that these rules were imposed by a majority vote of Premier League clubs.

What happens if City’s reported claim succeeds?

If an arbitration panel declares the APT rules invalid, then clubs would effectively be free to do any commercial deals they wished without any independent judgement being made on whether those deals were for fair market value.

That could then in turn help clubs boost their bottom lines and give them greater leeway on transfer and wages spending. There are fears it could lead to the clubs whose owners have the deepest pockets – City and Newcastle – effectively being in a league of their own in terms of spending.

Some may welcome the scrapping of the rules, with opponents of APT and PSR saying they help to maintain the status quo and make it impossible for ambitious clubs to challenge the established elite.

The Times reports that the Premier League has sought the help of other clubs in defending itself against the claim, and says between 10 and 12 clubs are supporting the league’s position in some form or other.

The Times report that at least one club has submitted a witness statement in support of City’s claim.

What are the other implications?

The Times suggests a positive outcome in this case could even boost City’s defence against the 115 Premier League charges they face, with that hearing set to begin in the autumn.

Even though the current APT rules were introduced after the period where City are alleged to have breached financial rules, there were still requirements on deals being done for fair market value, so any successful challenge to the APT rules could undermine the Premier League’s case.

Perhaps even more significantly, a successful challenge could cripple the league’s ability to govern itself through majority rule, allowing clubs to do pretty much as they please.

Daniel Gore, a senior associate at the law firm Withers, said: “It is hard to see how effective governance could take place without a (majority vote) threshold such as this, so Man City’s challenge could plunge the Premier League’s governance structure into chaos and make it harder for any decision to take place.”

What have the league and City said?

League rules state that such processes should be conducted confidentially until an outcome is reached. Consequently, neither the Premier League nor City has offered any comment on the Times story when contacted by PA.

 

European Leagues

Pep Guardiola’s Resignation Message, Man City Verdict And Next Club Plans

Pep Guardiola’s Resignation Message, Man City Verdict And Next Club Plans

Pep Guardiola is currently enduring his toughest spell in management, with Manchester City in the middle of a slump which has seen them plummet down the Premier League table.

The reigning champions are in seventh place, having won just one of their last eight matches. Their disastrous form has raised questions over Guardiola’s future at the Etihad Stadium despite the 53-year-old signing a new two-year deal last month.

At this point, there is nothing to suggest that club chiefs are thinking about appointing a new manager. However, it remains to be seen whether things will change if City fall even further away from the Premier League’s top four.

Resignation message after Barcelona

Guardiola is not known to be a quitter when the going gets tough, but even the fabled Spaniard has limits. He left Barcelona in 2012 after winning every available trophy, a spell of generational success which came at a cost.

Eventually, their form began to falter and Guardiola admitted that he knew he had to leave after losing the ability to motivate his players.

In an interview with Audi back in 2014, he said: “We were incredibly successful. Winning 14 trophies in only four years was the greatest period in the club’s history.

“But, gradually, I found it more and more difficult to motivate myself and to motivate the team. That is when you know it is time to walk away.”

Verdict on Man City future

Guardiola may have changed his tune in the years since leaving Barcelona, insisting earlier this year that he is determined to stick with City even in a worst-case scenario.

In a press conference, he was asked what he would do if City are found guilty of breaking financial rules and kicked out of the Premier League.

He replied: “I will be here. I don’t know the position of the conference they’re going to bring us, we’re going to come up and come up, we’re going to come back to the Premier League. I knew it then, I feel it now.”

Guardiola later refused to rule out the possibility of stepping down if it becomes clear that his position is no longer tenable.

“I’m not naive enough to think I am going to stay because we have a contract or what we have done in the past,” he said. “Maybe in a month I am not here if the situation is not going well. We have to do it again.”

Next job after Man City

It seems clear that Guardiola will not manage another club side, citing his fading energy levels in an interview with Desmontadito a few weeks ago.

“I’m not going to leave to go to another country [for a club],” he said. “I won’t have the energy. Now I’m still here, but to think about starting again, the whole process of training… no, no.”

An international job may still appeal to him, though. He added: “That’s different. It’s not every day [training] and every three days [playing]. I think I would have to stop [from the daily cycle].

“To rest, to see what we have done, what we can do better, because day-to-day we don’t have much time to rest. It’s continuous and to rest I think would be good for me, but right now, no. Right now I’m here [at City].”

Express

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European Leagues

Super Eagles Star Joins Mohammed Salah And Aleksandar Isak In Deeney’s BBC Team Of The Week

Super Eagles Star Joins Mohammed Salah And Aleksandar Isak In Deeney’s BBC Team Of The Week

Super Eagles and Nottingham Forest versatile defender, Olaoluwa Temitayo Aina, was included in Troy Deeney’s BBC Team of the Week after a brilliant outing against Brentford, Soccernet.ng reports.

The Nigerian is on Deeney’s list for the second time this season after his inclusion a few weeks ago when he scored a stunner against West Ham United from outside the 18-yard box.

Deeney, who was famously known as a Watford striker before he hung his boots, took up punditry with BBC and is now tasked with picking the BBC Team of the Week.

In goal, Deeney opted for Bournemouth’s Kepa Arrizabalaga who made a good number of saves to keep a clean sheet in his side’s 3-0 win over Manchester United at Old Trafford.

Trent Alexander-Arnold nicks the right-back spot after he provided a brilliant assist for Luis Diaz in Liverpool’s 6-3 win against Tottenham Hotspur. Trent is joined by Everton’s James Tarkowski and Bournemouth’s Dean Huijsen at the heart of the defence.
Ola Aina picks up the left-back position after scoring in Forest’s 2-0 win over Brentford to put the Reds in 4th place on the English Premier League table.

“Another great win for Nottingham Forest, beating Brentford at their place. He looks solid defensively and is a great option going forward as well, as shown by his goal,” Deeney said about the Super Eagles defender.

In midfield, Liverpool’s Dominik Szoboszlai joins Wolves Matheus Cunha and Arsenal’s Thomas Partey, as each player were involved in their side’s win over the weekend.

Deeney’s right-wing pick was Mohammed Salah. The Egyptian recorded a brace of goals and assists against Tottenham, and went one better to break Thierry Henry’s long-standing goal contribution record in the English top-flight.

Luis Diaz scored two goals against Spurs on Sunday as a centre-forward but fits into Deeney’s team on the left. Leading the line is Newcastle United’s Aleksandar Isak, who scored a hat-trick in his side’s 4-0 win against Ipswich Town.

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European Leagues

Ruben Amorim Says Marcus Rashford Must Do More Ahead Of Wolves clash

Ruben Amorim Says Marcus Rashford Must Do More Ahead Of Wolves clash

Marcus Rashford revealed he was “ready for a new challenge” during a recent interview with sports journalist Henry Winter. Now Red Devils manager Ruben Amorim has struck back, insisting his side can expect more from a player who has spent so long at Old Trafford. United will take on Wolves in the Premier League on Boxing Day, having fallen to a 3-0 defeat against Bournemouth last time out.

Ruben Amorim believes Marcus Rashford has a responsibility to perform for Manchester United after nearly two decades at Old Trafford.
The forward joined the club’s academy at the age of seven and made his first-team debut in 2016.
However, he revealed that he is “ready for a new challenge” during a recent interview with sports journalist Henry Winter, having been left out of Amorim’s squad for the Manchester derby.

United will face Wolves on Boxing Day, and the Portuguese manager believes The Red Devils have to be strong during a difficult time for the club.
“Some guys have a big responsibility here because they have been here for a long time,” he said when asked about what he expects from Rashford.
“If you have big talents, we need big performances, big responsibility, big engagement to push everybody forward in this moment.
“This is maybe one of the lowest moments in our club. We have to face it and be strong.”
To add to Amorim’s issues at the club, his press conference at Old Trafford was interrupted by a leaky roof.
“If I knew [how], I would solve all the problems of this club, even this [leaky roof at the press conference].

“I know what I am going to do. That is so clear for me. I will not say I am feeling relaxed because I’m really frustrated.
“It’s a very difficult moment, but we will solve problems step by step and find answers for everything.”

United are 13th in the Premier League table ahead of their trip to Molineux.
They suffered a disappointing 3-0 defeat against Bournemouth in their last league match, and Amorim is prioritising a win over Christmas celebrations as he looks to get the club back on track.

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