FILE PHOTO: Soccer Football - Premier League - Manchester City v Everton - Etihad Stadium, Manchester, Britain - December 31, 2022 General view of a Premier League branded ball inside the stadium before the match REUTERS/Phil Noble/File Photo
(Reuters) - The Premier League's sponsorship regulations between 2021 and 2024 are "void and unenforceable", a tribunal ruled on Friday.
The decision follows a legal challenge by Manchester City against the league's Associated Party Transaction (APT) rules, which regulate commercial deals between clubs and companies linked to their owners if considered above fair market value.
"In the first partial final award, the APT Rules and the amended APT Rules were found to be unlawful in three respects," the tribunal said in its conclusion.
"There now arises for decision the question whether those three respects can be severed from the remaining APT rules so that those remaining APT rules are valid and enforceable.
"The three respects in which the APT rules and amended APT rules were unlawful cannot be severed with the result that the APT rules as a whole are void and unenforceable."
The Premier League has said the ruling does not affect the "valid operation" of its current APT rules, which were amended in November despite objections from City, Newcastle United, Nottingham Forest, and Aston Villa.
"The result, the Tribunal has determined, is that the previous APT Rules, as a whole, are unenforceable," the Premier League said in a statement.
"However, the previous APT rules are no longer in place, as Clubs voted new APT rules into force in November 2024. This decision expressly does not impact the valid operation of the new rules," the English league added.
Invalidated rules included low-interest shareholder loans and competition law conflicts outlined by a tribunal last year.
Reigning champions City had previously criticised the Premier League's approach, arguing that changes to the regulations should not have been implemented before the tribunal's final ruling.
In a separate independent hearing, City claimed a partial victory after an arbitration panel ruled on sponsorship deals that the club was blocked from completing.
City, who have won eight Premier League titles, one Champions League, three FA Cups and six League Cups since being bought by Sheikh Mansour's Abu Dhabi United Group in 2008, were accused of more than 100 alleged breaches of finance rules.
They are expected to find out the verdict for the alleged financial breaches later this year.
(Reporting by Angelica Medina and Janina Nuno in Mexico City, editing by Pritha Sarkar)
