JUST IN: Groundbreaking Victory As Manchester City Defeat Premier League In Legal Battle—-Manchester City have scored a seismic victory in their war with the Premier League after new rules on sponsorship deals were branded ‘unlawful’.

In a significant, landmark verdict that will send shockwaves through the top flight, a heavyweight panel of retired judges has ruled that regulations aimed at preventing clubs from inflating deals with companies linked to their owners breach the Competition Act – and that the top flight was wrong to stop two recent City deals.

The Abu Dhabi-owned four-in-a-row champions, currently facing 115 charges of breaking Premier League financial rules in a separate case, took the league to court earlier this year. They claimed the rules, brought in after the Saudi-led takeover of Newcastle United and amended in February, were unfair.

And in a ruling that could spell trouble for others – not least rivals Arsenal – the system on Associated Party Transactions (APTs) was deemed unlawful. The panel gave a number of reasons, including the fact that the rules do not extend to loans from owners and shareholders.

Of £4billion borrowed across the league £1.5bn comes from shareholder loans – including all of the Gunners estimated £250m borrowings and almost all of Brighton‘s.

Others in a similar position could also now be impacted should the rules subsequently change.

City had argued that such payments were unfair and not at market value as they were often at zero or no interest or did not have to be repaid at all. If commercial rates are now applied – and those loans included in club’s profit and sustainability accounts – many could find themselves in breach of financial regulation in what could be a nightmare scenario that would heap pressure on Premier League bosses.

Developing Story…

CREDIT: DAILYMAIL.CO.UK