Man City bolstered by £240 million financial news from Atletico Madrid.

Man City has had a successful week, winning their challenge to the Premier League’s linked party transaction rules and perhaps receiving another significant financial boost from Spain.

The decision of the legal arbitration with the Premier League, which is distinct from the ‘115 charges’ case, has been read differently by various legal experts.

These are rarely unambiguous win-lose situations, but Man City has clearly achieved success with some aspects of its argument.

The related party transaction (APT) laws require that all commercial arrangements with owner-linked businesses be evaluated for fair market value in order to prevent clubs from striking unduly inflated deals.

Previously, clubs had to establish that their commercial partnerships were at a fair market price, but the City case appears to have shifted the burden of evidence to the Premier League.

City may also have gained the privilege for teams to view the Premier League’s database of commercial arrangements, which will assist them determine the fair market value of sponsorships.

The Premier League has also put itself up to compensation claims from City for lost earnings.

And there’s more good news on the commercial front for City, this time from La Liga giants Atletico Madrid.

READ MORE: Manchester City beat Arsenal to signing of English wonderkid, who will sign contract in January 2025.

Manchester City will take the Atletico Madrid agreement as a standard, according to one analyst.
One revelation from the APT hearing was that the Premier League had thwarted Man City’s attempts to sign a large new sponsorship agreement with Etihad.

The airline, which is both City’s front-of-shirt and stadium naming rights partner, increases City’s commercial revenue by around £67.5 million per season.

Etihad is effectively controlled by the United Arab Emirates, whose Abu Dhabi royal family also owns Manchester City, making the relationship between the two an APT arrangement.

The Premier League denied a renewal of the arrangement, as well as another sponsorship agreement with First Abu Dhabi Bank, since the Premier League determined that it did not represent fair market value.

The APT panel ruled that the Premier League’s conduct were unconstitutional because they failed to provide City with the required information to appeal their decid

Atletico Madrid has now signed a 10-year stadium naming rights agreement worth more than £240 million with Riyadh Air, another Gulf state-owned airline from Saudi Arabia.

According to legal expert and former Man City counsel Stefan Borson, the relationship is essential for the City since it may be used to determine fair market value.

This might allow City to increase the value of their commercial agreement;
READ MORE: Why Manchester City felt Arsenal would face punishment from the Premier League.
Will the APT case affect Man City’s 115 charges?

The outcome of the APT hearing is unpleasant for the Premier League, which is fighting on numerous fronts currently.

Clubs will hold ’emergency discussions’ in London soon to ease tensions over the issue, which was worsened when City wrote to other clubs to question the league’s interpretation of the verdict.

However, the APT case is distinct from the hearing on Man City’s 115 alleged financial offenses, which is now underway and anticipated to conclude next year.