115 and now this …

Just when you thought you couldn’t dislike Man City anymore than you already do, news has emerged of their ‘legal assault‘ on the Premier League.

The club with 115 charges levelled against it by the same organisation are, in essence, demanding financial compensation because they say they have been denied revenue/income because of associated party transaction rules. These rules, voted on by all the clubs in the Premier League, are to prevent sponsors linked with club owners from paying over the odds. A ‘fair market value’, has to be assessed.

So, as an example: Imagine I am a nation state or an oligarch with limitless billions at my disposal. I buy Arsenal. In order to provide Arsenal with income it can use to spend on transfers and, in particular, wages/compensation for players and staff, I have a company in my portfolio which then becomes a sponsor of the club. Except this company signs a deal which pays far more than any other company would, and it’s basically just a way to funnel cash into Arsenal without it being explicitly from the pockets of the owner.

But Man City, who already have 115 charges to contend with, are suggesting this is unfair. Not that they have ever done anything like that, by the way, but they are claiming ‘discrimination’ and that they are subject to the ‘tyranny of the majority’. From The Times article (£) yesterday:

City argue that sponsors linked to club owners — City’s are in Abu Dhabi — should be allowed to determine how much they want to pay, regardless of independent valuation. Four of City’s top ten sponsors have ties to the United Arab Emirates, including their stadium and shirt sponsor, Etihad Airways.

Using a word like tyranny is obviously fairly loaded and City, with 115 charges set to be decided on in a hearing in November, aren’t above a bit of that themselves. Again, from The Times:

City argue that the present rules will limit their ability to buy the best players and force them to charge fans more for tickets….


Source link : https://arseblog.com/2024/06/115-and-now-this/

Author : arseblog

Publish date : 2024-06-05 07:13:10

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