Tag: associated party transaction

  • City’s fresh controversy as furious Spanish side accuses PL giants of dodgy transfer tactics

    City’s fresh controversy as furious Spanish side accuses PL giants of dodgy transfer tactics

    Manchester City are embroiled in a new transfer controversy with Spanish club Real Valladolid accusing the reigning English Premier League champions of trying to unfairly pinch one of their young stars.

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    Teenage defender Juma Bah has been accused of breaching his contract by Real Valladolid, and they believe City are behind the saga.

    The 18-year-old, who was born in Sierra Leone, and his agent told the club on Tuesday that they intended to unilaterally break the contract between player and club.

    The following day, Juma did not attend at training and he subsequently lodged his release clause with the Royal Spanish Football Federation.

    Real Valladolid then released a scathing statement which alleged that City had attempted to screw them over, and said they were willing to take legal action.

    “The club holds the player responsible for the breach of his contractual commitments and has asked its legal department to initiate disciplinary action,” the club statement said.

    “The club considers that Manchester City, belonging to the City Football Group (CFG), is behind the decision. It seems they have advised the player to take this route, which leaves Valladolid defenceless.”

    Juma has made a dozen first team appearances for the La Liga side after initially joining them on loan from AIK Freetong in Sierra Leone.

    Real Valladolid then made the move permanent on January 1.

    He remains registered with their youth team, but refused to be registered with the senior side as that would have pushed up the price of his release clause.

    “The player’s intention, allegedly supported and guided by Manchester City and his agent, has caused great disappointment and indignation within Real Valladolid, who welcomed Juma with open arms and gave him the opportunity of a lifetime,” the statement added.

    “The RFEF has confirmed that the player has deposited the necessary amount for the unilateral termination of the contract.

    “In this regard, Real Valladolid informs that it reserves the right to take the appropriate legal and sporting jurisdictions to exercise its rights and defend its interests.”

    City, as well as Inter Milan, are among several teams who reportedly showed interest in Juma during the current January transfer window.

    City Football Group is the parent company for Manchester City and owns many other clubs around the world, and Juma could continue his career at any of those clubs, or be sent out on loan.

    Pep Guardiola’s side have been active so far in the transfer period, signing Uzbek Abdukodir Khusanov from Lens and Brazilian youth international Vitor Reis from Palmeiras to bolster their defensive stocks.

    They have struggled to cover injuries, and their form has dropped away, as City sit fifth in the Premier League and are facing a league phase exit from the Champions League with one matchday remaining.

    Off the pitch, they are also awaiting the outcome of the hearing into the 115 breaches of Premier League financial fair play rules they have been accused of.

    That trial began in September and wrapped up in December, but the verdict will be announced later this year.

    They were also involved in a separate legal battle with the Premier League over associated party transaction rules last year.

    City have not responded to several media requests for comment on the Juma matter.

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  • ‘Unfair’: PL civil war laid bare as landmark case exposes messy City row

    ‘Unfair’: PL civil war laid bare as landmark case exposes messy City row

    Manchester City and the Premier League both claimed victory on Monday after the champions challenged the English top flight’s rules on commercial deals.

    City launched legal action against the associated party transaction (APT) rules earlier this year on the grounds they were anti-competitive.

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    The APT rules are designed to ensure commercial deals with entities linked to a club’s owners reflect fair market value.

    The case is separate from an ongoing hearing involving City, with the club fighting 115 charges relating to alleged breaches of Premier League financial rules.

    The Premier League said on Monday that City were “unsuccessful in the majority of (their) challenge” and that the tribunal considering the case had determined the APT rules were necessary and pursued a legitimate objective.

    But City released a statement saying the tribunal had declared the APT rules “unlawful” and that the league had abused a dominant position under competition law.

    Also going against City were Manchester United, Liverpool, Arsenal, Tottenham, Brighton and West Ham who were all witnesses for the Premier League.

    City had the support of Everton, Newcastle and Chelsea, while Nottingham Forest are also reprotedly sympathetic to the giant’s cause.

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    The Premier League said the tribunal had supported the legitimacy of the regulations and said it had found them essential to make the profitability and sustainability rules (PSR) effective.

    It said the tribunal had agreed with the Premier League that if a transaction was evidently not at fair market value, that would distort competition within the league.

    The league also said the panel had rejected City’s argument that the purpose of the rules was to discriminate against clubs with ownership from the Gulf region.

    The Premier League said the panel found in favour of City in “two respects only” — that shareholder loans should not be excluded from APT rules and that a “limited number of amendments” to the APT rules made earlier should not be retained.

    Manchester City said the panel found the APT rules were “structurally unfair” and that the panel had set aside specific decisions of the Premier League to restate the fair market value of two transactions entered into by the club.

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  • Wild twist to PL’s financial storm as Man City sues league over ‘discrimination’ claim

    Wild twist to PL’s financial storm as Man City sues league over ‘discrimination’ claim

    Manchester City have launched legal action against the Premier League alleging “discrimination” in a move that could have far-reaching consequences for the English top flight, The Times reported on Tuesday.

    The Times said the recently crowned champions would try to end the league’s associated party transaction (APT) rules, which they are understood to claim are unlawful, and seek damages.

    The Premier League tightened rules regarding APTs, relating to clubs signing sponsorship deals with companies linked to their owners, in February.

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    The Times added the dispute between City and the Premier League would be settled after a two-week arbitration hearing starting next Monday.

    Abu Dhabi-owned City sealed a fourth straight Premier League title last month, underlining their domination of the English game over the past decade.

    Their rapid rise has been aided by sponsorship deals with a series of related parties in the Gulf. Abu Dhabi-based Etihad Airways is both City’s stadium and shirt sponsor.

    In a separate case City, managed by Pep Guardiola, are facing 115 Premier League charges for alleged breaches of regulations and financial rules between 2009 and 2023 — charges they strongly deny.

    That hearing is reportedly set for November.

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    APT rules are designed to keep the Premier League competitive, requiring clubs to prove that commercial deals represent fair market value.

    The Times report said City, in a 165-page legal document, argue they are victims of “discrimination” and refer to a “tyranny of the majority” aimed at stifling their success on the pitch.

    All Premier League rule changes and major broadcast and commercial proposals require the approval of at least two-thirds of those who vote, or 14 of the 20 clubs.

    If City are successful in their legal fight, it could enable the richest clubs to value their sponsorship deals without independent assessment, further widening the financial gulf within the English top flight.

    The Times said between 10 and 12 clubs had come forward, providing either witness statements or letters detailing evidence, in support of the Premier League’s defence against City’s claim.

    The Times said City are suing the Premier League for damages, referring to losses incurred as a result of the existing rules.

    City say the rules were imposed at the instigation of rival clubs reacting to the Saudi takeover of Newcastle, which took place in 2021, with the aim to “safeguard their own commercial advantages”, according to the report.

    City have accused rival teams of “discrimination against Gulf ownership”, citing the comments of one senior club executive, The Times said.

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