Manchester City send ‘illegal’ letters to Everton and Liverpool ahead of key vote on Premier League rules

Manchester City send ‘illegal’ letters to Everton and Liverpool ahead of key vote on Premier League rules

 

Manchester City expressed concern about the proposed new APT rules, while Liverpool and Everton sent messages just before the vote, according to private emails.

 

Manchester City have written to Liverpool, Everton and all other Premier League clubs to express their concerns about revised financial rules ahead of next week’s vote. The club said the proposed changes to its related party transaction (APT) rules were “illegal”.

 

Manchester City and the Premier League said in a landmark ruling in October that the APT was necessary for regulation but that some elements of the framework breached EU competition law.

 

As a result, the Premier League changed its rules. Manchester City’s legal director Simon Cliff believes the new proposals are still contrary to the committee’s decision, according to a letter seen by the BBC. He also accused the Premier League of speeding up the consultation process and forcing clubs to “vote blindly.”

According to the BBC, Cliff said in the letter: “It is important that any new regime is fair, informed and based on legal rules. “It is important that the Premier League does the right thing this time as we want to avoid costly legal battles over this issue in the future.”

 

The Premier League said in a letter to Manchester City on Thursday that it rejects the club’s repeated and baseless claims about the matter in the strongest possible terms. He denied defrauding the members. The Federation added in the letter: “On the contrary, the Federation fully recognizes and takes very seriously its obligation to act fairly and impartially.” He said he had acted honestly, openly and responsibly, taking the word “proposal sent for immediate consultation”.

The committee ruled last October that owner loans, known as “shareholder loans,” should not be exempt from spending limits. In the future, interest will be charged because these costs will be added to these costs, and the current regulations will be abolished.

 

One of the key issues highlighted by Manchester City lawyer Cliff is the Premier League’s suggestion that loans previously made by shareholders cannot be recovered through interest charges and that these charges will only apply to new deals after the new rules come into force.

 

Cliff thinks this is illegal. “It’s one of the things that was ruled illegal in a recent arbitration,” he said. Cliff said a yes vote would lead to “distorting the market” and would therefore be “illegal”.

 

Cliff added that Manchester City “supports strong, effective and legal regulation” but that subsequent discussions were “critical” as both sides disagreed that the current APT structure should be abandoned. Cliff added: “The Premier League should not rush to accept amendments, particularly those that involve significant legal risks.” The Football Association also received a similar letter which was sent to clubs. The Premier League defended its position against Manchester City on Thursday, saying: “The league considered all the views of the clubs, including MCFC, during the consultation process and sought the opinion of key lawyers when considering the proposals.” “The fact that the MCFC agrees with the proposed changes or the process timeline adopted does not mean that the consultation itself was flawed or that the league failed in its regulatory duties.”

 

The league also criticized Manchester City in a letter last month, saying it had “biased and misinterpreted” transcripts of phone calls with the club. Manchester City said: “The opposition to this process does not provide a credible basis for an objection.”

 

Regarding possible further legal action, the league complained that “these threats are baseless and are made without any attempt to clarify the credible basis on which MCFC could restrict the consultation process”.