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It’s another legal blow to the Premier League after Leicester City were successful in their appeal against Profitability and Sustainability Rules (PSRs) charges just a few weeks ago.
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The most recent ruling could have a massive impact throughout the Premier League over the next few weeks, months and years.
With that in mind, here is a rundown of everything that you need to know, and how the ruling impacts Liverpool.
READ MORE: Man City claim major victory over Premier League as Liverpool 'evidence given' in legal fight
READ MORE: Man City release statement after Liverpool stance emerges amid new FFP worry for clubs
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Man City statement
Here’s what the club said in an official statement on their website following the publication of the decision:
“Following today’s publication of the Rule X Arbitral Tribunal Award, Manchester City Football Club thanks the distinguished members of the Arbitral Tribunal for their work and considerations and welcomes their findings:
“The Club has succeeded with its claim: the Associated Party Transaction (APT) rules have been found to be unlawful and the Premier League’s decisions on two specific MCFC sponsorship transactions have been set aside
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“The Tribunal found that both the original APT rules and the current, (amended) APT Rules violate UK competition law and violate the requirements of procedural fairness.
“The Premier League was found to have abused its dominant position.
“The Tribunal has determined both that the rules are structurally unfair and that the Premier League was specifically unfair in how it applied those rules to the Club in practice.
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“The rules were found to be discriminatory in how they operate, because they deliberately excluded shareholder loans.
“As well as these general findings on legality, the Tribunal has set aside specific decisions of the Premier League to restate the fair market value of two transactions entered into by the Club.
“The tribunal held that the Premier League had reached the decisions in a procedurally unfair manner.
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“The Tribunal also ruled that there was an unreasonable delay in the Premier League’s fair market value assessment of two of the Club’s sponsorship transactions, and so the Premier League breached its own rules.”
Liverpool evidence
Liverpool owners FSG have always been supporters of the Premier League’s financial rules, such as Profitability and Sustainability Rules (PSRs) due to wanting a level playing field.
Arsenal, Manchester United, West Ham, Brentford, Bournemouth, Fulham and Wolves were the other clubs to provide evidence for the Premier League.
Premier League statement
The Premier League have since released a statement on the tribunal.
It reads:
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“The Premier League welcomes the Tribunal’s findings, which endorsed the overall objectives, framework and decision-making of the APT system.
Moreover, the Tribunal found that the Rules are necessary in order for the League’s financial controls to be effective.
“The decision represents an important and detailed assessment of the APT Rules, which ensure clubs are not able to benefit from commercial deals or reductions in costs that are not at Fair Market Value (FMV) by virtue of relationships with Associated Parties.
“These elements can quickly and effectively be remedied by the League and clubs.
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In the meantime, the Premier League will continue to operate the existing APT system, taking into account the findings made by the Tribunal.”
What does it all mean for Liverpool?
The findings of the tribunal could have a major impact on all Premier League clubs, including Liverpool.
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