Man City boosted after £240m financial news from Atletico Madrid

Man City have had a good week, claiming victory in their challenge to the Premier League’s associated party transaction rules and now potentially another huge financial boost from Spain.

The outcome of the legal arbitration with the Premier League, which is separate from the ‘115 charges’ case, has been interpreted differently by various legal experts.

These types of cases are very rarely binary win-lose affairs, but Man City have categorically had success with some elements of their argument.

The associated party transaction (APT) rules dictate that all commercial deals with owner-linked entities must be scrutinised for fair market value, so as to prevent clubs from striking artificially inflated deals.

Previously, clubs had to demonstrate that their commercial deals were fair market price, but one outcome of the City case appears to be that the burden of proof is now with the Premier League.

City may also have won the right for clubs to access the Premier League’s database of commercial deals, which will help them in terms of establishing the fair market value of sponsorships.

The Premier League has also opened itself up to damages claims by City for lost earnings.

And there is more good news on the commercial front for City, this time involving La Liga giants Atletico Madrid.

• READ MORE: Manchester City beat Arsenal to signing of English wonderkid, he will pen contract in January 2025

Man City to use Atletico Madrid deal as benchmark, says expert

One revelation from the APT hearing was that the Premier League had blocked Man City’s attempts to strike a massive new sponsorship deal with Etihad.

The airline, who are both City’s front-of-shirt and stadium naming rights partner, boost City’s commercial income by roughly £67.5m per season.

Etihad are effectively owned by the United Arab Emirates, whose Abu Dhabi royal family are also the owners of Man City and so the partnership between the two is classed an APT deal.

The Premier League blocked a renewal of the deal, alongside another sponsorship agreement with First Abu Dhabi Bank, because it was deemed not to represent fair market value by the Premier League.

The APT tribunal found that the Premier League’s actions were unlawful because they did not give City the necessary information to appeal their decision.

Now, Atletico Madrid have struck a £240m-plus, 10-year stadium naming rights deal with another Gulf state-owned airline, Saudi Arabia’s Riyadh Air.

As explained by legal expert and former Man City adviser Stefan Borson, that partnership is significant for City as it can be used as a benchmark for fair market value.

That could potentially allow City to ramp up the value of their commercial deal with Etihad and get approval from the Premier League.

• READ MORE: Why Manchester City thought Arsenal were going to receive a punishment from the Premier League

Will the APT case impact Man City’s 115 charges?

The outcome of the APT hearing is embarrassing for the Premier League, who are having fight on multiple fronts at present.

Clubs will attend ’emergency talks’ in London imminently in order to soothe tensions from the case, which was exacerbated when City wrote to other clubs to discredit the league’s interpretation of the outcome.

But the APT case is separate to the hearing over Man City’s 115 alleged financial offences, which is currently ongoing with an outcome expected next year.