Former Everton CEO Keith Wyness has predicted that Man City’s legal lawsuit against the Premier League will fail, saying it ‘will be squashed’.
The English top flight may suffer greatly as a result of the Citizens’ legal challenge against Premier League financial rules, which will be heard over the course of the next two weeks.
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The Premier League champions have begun a hearing that will last until June 21 to contest the league’s associated party transaction (APT) rules.
It is believed Man City will challenge the validity of the rules under UK competition law.
The Times, which first reported details of Man City’s claim last Tuesday, said the club were seeking to scrap the rules, which were first introduced in December 2021 following the Saudi-led takeover of Newcastle and were most recently strengthened in February.
The rules are designed to ensure any commercial deal or player transfer between a club and entities with links to that club’s ownership are conducted at fair market value, so that club revenues are not artificially inflated.
If an arbitration panel declares the APT rules invalid, then clubs would effectively be free to do any commercial deals they wished without any independent judgement being made on whether those deals were for fair market value.
As a result, clubs may be able to increase their declared revenue and have more discretion over wage and transfer spending in accordance with financial sustainability regulations. There are worries that this would put Man City and Newcastle, the teams with the wealthiest owners, in a class by themselves when it comes to spending.
The claim’s potential impact on the 115 charges that the Premier League has brought against City for allegedly breaking league finance regulations is unknown. In that instance, a hearing is anticipated to start in the autumn. Man City vehemently refutes any misconduct.
However, Wyness, the former head of Everton, is sceptical that Man City would prevail in their legal battle with the Premier
“But short-term, they’ll have achieved their goal of attacking and distracting the Premier League from the bigger 115 charges case.
“I think that’s the whole game. It’s very sad that they’ve taken such an aggressive position in the football discussion. It’s wrong.”
Finance expert Stefan Borson insists Everton will be throwing their weight behind Man City’s case after previously benefitting from sponsorship deals linked to Alisher Usmanov.
“Historically, Everton have benefitted greatly from sponsorships from people like Usmanov’s vehicle USM,” Borson told Football Insider.
USM was a related party at one point in time, but that relationship ended.
“Those transactions with USM were not covered by the Premier League until the affiliated party regulations took effect, at which point it ceased to be a linked party.
“Some of those deals would be prevented or require proof of fair value under the strict rules now that associated party rules apply.”
“However, the fact that Everton is for sale is maybe most significant. There should be as minimal restriction as possible for teams that are attempting to sell themselves because they want to be able to make an effect if they were bought.
Obviously,
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