'I Suspect...' - Exclusive: Stefan Borson drops verdict on Man City bombshell

Man City decided to take legal action against the Premier League after they toughened up the associated party transaction (APT) rules back in February.

That is the view of former Man City financial advisor Stefan Borson, who exclusively told Football Insider that City have expressed concerns about the APT rules since Newcastle United’s takeover in 2021.

The reigning champions are set to face the Premier League in a two-week hearing and challenge the current rules about sponsorship deals in the top flight.

Clubs voted in February to toughen up rules on associated party deals which are designed to ensure sponsorship agreements are at a fair market value.

City have struck several deals with Abu Dhabi-based companies since their takeover in 2008, including major shirt and stadium deals with Etihad Airways.

Borson explained that the final straw for City was the change to APT rules in February which now require third parties to declare fair market value.

Man City legal action started after final straw in February

“I don’t think the City case was expected,” Borson told Football Insider’s Sean Fisher and James Murray.

“I would have expected them to be very focused on the main case and the 115 charges.

“That said, City have consistently expressed reservations at the associated party rules as they unfolded after the Newcastle takeover through the introduction of the associated party rule.

“Initially, City actually voted in favour of the proposals around associated party rules.

“But once they were tabled in the December of 2021 they either abstained or they voted against.

“I suspect at that point that City had put the league on notice that they reserved their rights in terms of the legality of the associated party rules.

“Then in February of this year, the rules were strengthened with additional requirements for parties who are not clubs themselves – even the third parties now have requirements to deliver declarations from the directors about fair market value.

“I think at that point, City said that, ‘if you go ahead with these, we may well challenge them’.“

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