Liverpool is expected to strongly oppose Manchester City’s stance on Associated Party Transactions (ATPs) and may advocate for a complete ban on such sponsorship deals.
This stance comes amid Man City’s ongoing legal battle with the Premier League over rules limiting ATPs, which were implemented in December 2021.
Finance expert Stefan Borson has suggested that Liverpool will be at the forefront of this opposition.
According to Borson, Liverpool is likely to be one of the most vocal clubs pushing for stricter regulations on ATPs because the club does not rely on sponsorship deals from associated parties.
Unlike City, Liverpool does not seek to bring in sponsors linked to their owners, Fenway Sports Group (FSG), as a source of revenue.
The legal dispute initiated by Manchester City began on June 10, with the aim of concluding before the 2024/25 season. City argues that the existing ATP rules violate competition law and is seeking monetary damages, claiming that compliance with these rules has been financially burdensome.
If City wins the case, it could open the door for the club to secure substantial sponsorship deals from associated companies like Etihad Airways.
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City, which was taken over by Sheikh Mansour in 2008, has consistently invested heavily in the club.
The current rules, which mandate that all sponsorship deals in the Premier League must be of “fair market value,” have been a point of contention.
City believes that sponsors should be free to decide the value of their deals, arguing that the restrictions make running the club more expensive and could potentially divert funds from women’s football, youth development, and community projects.
Liverpool’s potential push for a complete ban on ATPs aligns with the club’s financial strategy.
The broader Premier League landscape is marked by clubs looking out for their own interests when it comes to financial regulations. Liverpool’s anticipated stance is a reflection of this reality.
The club’s opposition to ATPs stems from a desire to ensure a level playing field in terms of financial competition, as they do not benefit from the same types of lucrative sponsorships that clubs like City can secure from their owners’ associated businesses.
In summary, Liverpool is tipped to be a significant opponent to Manchester City’s legal challenge against the Premier League’s ATP rules.
By pushing for stricter regulations or even a complete ban, Liverpool seeks to maintain fairness in club financing and avoid potential competitive disadvantages in the league.
