Aston Villa's Wes Edens has already signed £2.4bn deal with Man City chairman amid Nassef Sawiris statement
Man City’s legal battle with the Premier League has descended into all-out warfare and exposed the fault lines within the competition – and Aston Villa...
Man City’s legal battle with the Premier League has descended into all-out warfare and exposed the fault lines within the competition – and Aston Villa now appear to have picked their side.
In the background of the ongoing hearing that will rule whether or not they are guilty of the 115 financial charges levelled at them, Man City have struck back at the Premier League in the arbitration courts.
City claimed victory in their challenge to the league’s Associated Party Transaction (APT) rules, which govern commercial deals and other subsidies struck with owner-linked enterprises.
These cases are rarely binary win-loss affairs, and it should be noted that the Premier League also claimed victory. The consensus among experts, however, is that City will be the happier of the warring factions.
One thing is certain – the Premier League has been forced to redraft several components of the APT rules.
Unlike Everton, Newcastle United and Chelsea, Aston Villa were not among the clubs to give evidence in support of Man City at the tribunal.
However, the two clubs have formed a strong relationship in recent times.
Like City, Villa are also disillusioned with the Premier League’s spending rules and saw a proposal to increase the three-year loss limit from £105m to £135m struck knocked back in the summer.
Now, Nassef Sawiris – Egypt’s richest man who owns a stake in Villa kit manufacturers Adidas – has issued a bombshell statement backing Man City’s calls to delay a vote on the amended APT rules on Friday.
And there is also a link between City and Sawiris’ co-investor at Villa Park, the private equity billionaire Wes Edens. More on that later.
Nassef Sawiris backs Man City’s APT proposal
Earlier this year, The Telegraph reported that Sawiris is moving his family’s NNS business office to Abu Dhabi, the home of the royal family that effectively own Man City.
That relocation will be complete by the end of the year.
Now, speaking to the same outlet, Sawiris has thrown his weight behind City’s proposal to delay the vote on the APT rules.
“We will be voting against the proposed APT Rules,” he told The Telegraph.
“In our view, a vote in 90 days on amended terms taking into consideration the Tribunal’s findings will have a significantly greater chance of securing the unanimous support of all 20 Premier League clubs.
“Crucially, a unanimous vote will present a fresh start for an embattled Premier League that began with the failed attempt to launch a Super League in 2021.
“With the imminent arrival of the Government’s Independent Football Regulator, it is more important than ever that the Premier League can present itself to the regulator with a united front.
“In our view, this will be far more easily achieved if the APT vote is held in February and supported unanimously by all clubs.”
“It is noteworthy that legal bills to date on this matter have already reached astronomical amounts; further challenges and escalation of these fees could be avoided through reaching consensus.
“Ultimately, a unanimous vote will showcase the emergence of a new era of clubs who can compete vigorously on the pitch but work together to strengthen the Premier League and its global appeal.”
Wes Edens’ business link with Man City’s Khaldoon Al Mubarak
While much has been made about Sawiris’ links to Abu Dhabi, Wes Edens also has connections to the UAE and one of the most powerful men at the Etihad Stadium.
One of the primary sources of the 63-year-old’s wealth’s wealth is Fortress Investment Group, the New York-headquartered firm he co-founded in 1998.
Fortress Investment expects to reach around £80bn worth of assets under management within five years, which would be double what they held in March this year.
The catalysts from that growth? According to Bloomberg, a £2.3bn investment from Abu Dhabi’s sovereign wealth fund Mubadala whose CEO is Man City chairman Khaldoon Al Mubarak.
The Man City x Aston Villa alliance: What does it all mean?
Sawiris and Edens’ business connections with Abu Dhabi and the UAE are all above board and, if nothing else, are emblematic of how small the worlds of private equity, sovereign wealth and sports business are.
On one reading, the Villa-City alliance is just two ambitious clubs acting in self-interest, as all clubs do. It just so happens that their interests align.
Villa have what some fans would consider the dream owners, willing to spend whatever it takes to deliver success on the pitch – but PSR is a millstone for them.
If they can delay the APT vote until a time when City have successfully lobbied for a more relaxed interpretation (they are currently claiming the whole APT system is moot), it could benefit them commercially, allowing Edens, Sawiris and Villa’s third co-investor, Atairos, to better subsidise the club via sponsorship.
Either way, the saga is horrible for PR for Richard Masters and his fellow big wigs at the Premier League.
There is growing awareness among fans that PSR is not fit for purpose and, with the threat of a government-backed independent regulator looming, they need to get their house in order. Fast.
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