Manchester City Chairman Khaldoon Al Mubarak Addresses Charges and Calls for Sensibility in Financial Policing
Manchester City chairman Khaldoon Al Mubarak has expressed frustration over the continuous references to the 115 Premier League charges against the club. These charges, spanning alleged breaches of regulations and financial rules from 2009 to 2023, have overshadowed City’s pursuit of a historic fourth consecutive Premier League title. City has consistently denied the allegations.
In his annual end-of-season address to the club’s internal media, Khaldoon articulated the collective frustration felt by the club and its supporters. “Of course, it’s frustrating,” he said.
“I think the reference is always frustrating. Having it being talked about the way it’s being talked about, I can feel, of course, for our fan base, for everyone associated with the club, to have these charges constantly referenced. We as a club have to respect that there’s a process that we have to go through, and we’ll go through it. It’s taking longer than anyone hoped for but it is what it is.”
Khaldoon also urged football authorities to show “more sensibility” in how they manage and police the game’s finances.
Legal Challenge Against Premier League’s APT Rules
Khaldoon’s remarks came shortly before The Times reported that Manchester City had filed a legal claim challenging the validity of the Premier League’s associated party transaction (APT) rules. These rules govern clubs’ sponsorship deals with companies linked to their owners.
According to The Times, City has alleged “discrimination” and launched legal action that could potentially have far-reaching consequences. City aims to abolish the APT rules, which they claim are unlawful, and seek damages. This move follows the Premier League’s tightening of APT regulations in February.
The ongoing legal and regulatory issues underscore the tensions between Manchester City and the football authorities, highlighting the complex landscape of modern football finance.
Far-reaching Consequences for Football Finance Regulations
Manchester City’s rapid ascent in the football world has been bolstered by sponsorship deals with Gulf-based companies, such as Abu Dhabi-based Etihad Airways, which sponsors both the club’s stadium and shirts. This model has come under scrutiny due to the Premier League’s associated party transaction (APT) rules, which City is now legally challenging.
The Times reports that Manchester City’s legal action against these rules, which pertain to sponsorship deals with owner-linked companies, will be heard in an arbitration hearing starting Monday.
If successful, the challenge could dismantle the APT system, allowing clubs to negotiate commercial deals without independent oversight. This outcome could fundamentally alter the financial landscape of football, removing a significant regulatory check on financial practices related to club ownership and sponsorship.
New UEFA Regulations and Financial Sensibility
As European football tightens its financial regulations, UEFA has introduced measures that will limit clubs’ spending on squad costs to 80% of their revenue, with this figure decreasing to 70% in subsequent years. These regulations are aimed at promoting financial sustainability across European leagues.
City chairman Khaldoon Al Mubarak called for a balanced and sensible approach to financial regulation. “I hope there’s a bit more sensibility in regulating, (that there is) always a balanced approach.
This is good for all the leagues, be it in England or the rest of Europe. I think you won’t see the same level (of transfer spending) as we’ve seen in the past few years because of the level of regulations that have come into place over the last 12 months,” he stated.
Premier League’s Upcoming AGM
Premier League club chairmen are scheduled to meet on Thursday for their annual general meeting. Reports indicate that between 10 and 12 of the 20 clubs will support maintaining the existing APT rules. This gathering will be crucial in determining the future of these regulations amidst Manchester City’s ongoing legal challenge.
The developments in Manchester City’s legal actions and the Premier League’s stance on sponsorship rules highlight significant tensions and potential changes in football’s financial governance.
The outcomes of these deliberations and legal proceedings could reshape how financial regulations are enforced in football, impacting how clubs across Europe manage their finances and sponsorships.
In the same interview to in-house media, Mubarak also said he was confident of finding the “right solution” regarding manger Pep Guardiola’s future at the club.
Guardiola, whose contract runs until 2025, cast doubt over his long-term future at the Etihad after completing the fourth consecutive league title last month, admitting it was difficult to find motivation after so much sustained success.
“With Pep, we’ve had this conversation many times before over the years of the contract,” Khaldoon said.
“Pep has always been fully committed to this club, fully committed to every contract he’s signed with us.
“The decision on his future is always a decisionaf we take together, and I have no doubt we will find, as we always have done, the right solution that works for Pep and works for us.”
