Manchester City challenge the Premier League over Associated Party Transaction amendments with Newcastle United to be affected

It wasn't too long ago that Manchester City claimed a victory over the Premier League at a tribunal to force changes to the Associated Party Transaction (APT) rules.

The win should have seen the rules scrapped or at least heavily amended, allowing clubs, such as Newcastle United, with wealthy owners with links to big companies, to agree on partnership deals with those companies at rates that they see fit.

For example, Newcastle could be allowed to create a deal with SAUDIA for £100 million to sponsor the training kit, and there could be no scrutiny.

Currently, deals must be subject to fair market value, which is fine, but it's the way that value is determined that is holding back the bigger clubs. What's fair to the likes of Manchester City isn't the same as, say, Ipswich Town, but of course that Manchester City deal would open the doors for the likes of Newcastle, Manchester United, Arsenal etc.

When the latest amendments to the rules were circulated following Manchester City's win, they were barely changed at all, but 16 clubs voted it through despite Man City's reservations that the rules haven't been amended enough.

Man City are now set to challenge the Premier League again as they still deem the rules to be unlawful, as reported by The Times, and as such the head of the Premier League, Richard Masters has written to all Premier League clubs to clarify the situation.

"Manchester City FC seeks a declaration that the amendments approved by clubs in November (and therefore the current APT rules in force) are unlawful and void," an excerpt of Masters' letter read. "The Premier League remains strongly of the view that the amendments passed in November were lawful and the APT rules comply with all competition law requirements.

"We consider that the new arbitration must be resolved as soon as possible and, to that end, have agreed that the same tribunal should be appointed to hear the new case. The parties are currently corresponding in relation to further directions.

“The APT rules remain in full force and effect and clubs remain required to comply with all aspects of the system.”

We called the 16 clubs who voted the rules through 'cowardly' at the time, and we stand by that view.

Hopefully, common sense will prevail in the latest tribunal case. It should work in Man City's favour that they are to use the same tribunal who already determined the laws to be unlawful, but we'll have to wait and see.

This once again seems to suggest that Newcastle knew this was coming and why they club hasn't pulled the trigger on stadium, training ground and training kit sponsors.