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Manchester City, Premier League both claim victories after APT ruling delivered

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Manchester City, Premier League both claim victories after APT ruling delivered

Manchester City and the Premier League are both claiming victories after a ruling regarding the league’s Associated Party Transaction (APT) regulations was published.

The ruling states that the Premier League’s APT rules and amendments, which were introduced in December 2021 and February of this year respectively, are “unlawful” and in breach of UK competition law as they deliberately exclude shareholder loans — when a club borrows money from its ownership group, usually interest-free.

This case is separate from City’s defence of more than 100 charges against them for allegedly breaching the Premier League’s profitability and sustainability rules (PSR), which they deny.

In this case, City claimed that the league’s APT rules — which aim to regulate against its clubs using sponsorship deals with companies linked to their owners to inflate revenue streams and allow room for greater spending — are unlawful and against competition law. The league insisted that the rules were fully compatible with the law.

A statement from City on Monday outlined that the Premier League “was found to have abused its dominant position” by the tribunal. City also pointed out that the panel has ruled two of the league’s decisions on the club’s sponsorship deals — relating to the Etihad Air Group and First Abu Dhabi Bank — should be set aside.

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The Premier League, meanwhile, said that it “welcomes” the ruling. The league admitted that the ruling identified “a small number of discrete elements” of the APT which do not comply with competition law but claims it “(endorses) the overall objectives, framework and decision-making of the APT system”.

The Premier League added that the tribunal had deemed the APT rules “necessary” as a means of ensuring the efficacy of the league’s Profitability and Sustainability Rules (PSR), “thereby supporting and delivering sporting integrity and sustainability in the Premier League”.

City have won the last four Premier League titles (Naomi Baker/Getty Images)

City have won the last four Premier League titles (Naomi Baker/Getty Images)

The Premier League says it will continue to operate the APT system, “taking into account the findings” of the tribunal. It added that the elements that do not comply with competition law “can quickly and effectively” be fixed.

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The ruling was delivered by a three-person arbitration panel and came after City challenged the league’s APT rules. The case was heard in June.

An amendment to the current APT rules was set to be discussed at a meeting of Premier League shareholders on Thursday but was removed from the agenda ahead of time.

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A key part of Monday’s ruling related to the issue of shareholder loans.

The tribunal decided that as well as sponsorship deals, shareholder loans should also be taken into account by the APT rules. Many of these loans are interest-free, which benefits the club because they will subsequently owe a smaller amount. Arsenal, for example, have borrowed more than £200million ($262m) in shareholder loans, as of the end of 2022-23.

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Historically, interest-free shareholder loans have been excluded from the APT rules, which City claimed was unfair. Their argument is that this distorts the profitability and sustainability (PSR) calculations because an interest-free loan cannot be a fair market value. The tribunal agreed with them.

In theory, this means that if interest-free shareholder loans are included within PSR, many clubs will have to rebalance their books in order to avoid a breach.

Arsenal owe more than £200m to their owner, Stan Kroenke (right) (Glyn Kirk/AFP via Getty Images)

Arsenal owe more than £200m to their owner, Stan Kroenke (right) (Glyn Kirk/AFP via Getty Images)

In June, a 165-page legal submission seen by British newspaper The Times showed that City argued they have suffered “discrimination” as a result of the league’s APT rules, alleging they amounted to a “tyranny of the majority”. Premier League rules dictate that a majority of 14 clubs must agree to new regulations being implemented.

Premier League clubs voted through temporary measures relating to APT in October 2021. That came following the Saudi Arabian Public Investment Fund (PIF) taking control of Newcastle United earlier that month. In December 2021, it was ruled that clubs must submit all sponsorship deals worth over £1million ($1.26m) to the Premier League to decide on the possibility of an APT — despite opposition from City and Newcastle.

Those rules were then were strengthened in February 2024 following another vote among the clubs, who voted in favour of a framework that sees all APTs subjected to a fair market value test, meaning that any deal would have to be financially justifiable for all parties.

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There had previously been concerns that ownerships could use multiple companies under their jurisdiction to strike sponsorship agreements that would artificially inflate their own revenue and circumvent PSR rules.

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The APT rules, though, ensured that Newcastle have had their sponsorship agreements with PIF-linked events company Sela and e-commerce company Noon subjected to the market value tests.

It is also applicable for any sponsorship agreements between City and other groups with links to the club’s City Football Group (CFG) ownership. City have always voted against or abstained against the introduction of APT rules at Premier League meetings.

In 2022-23, City posted Premier League record revenues of £712.8m (now ¢953m), of which almost half — £341.4m — was commercial income.

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Much of City’s revenue came from companies with links to CFG. Etihad, the state airline of the United Arab Emirates, is the lead sponsor for both City’s shirt and stadium.

Etihad Airways has been City's primary shirt sponsor since 2009 (Stu Forster/Getty Images)

Etihad Airways has been City’s primary shirt sponsor since 2009 (Stu Forster/Getty Images)

Leicester City are also implicated by the APT regulations. Their chief executive and chairman Aiyawatt Srivaddhanaprabha also controls the King Power company, which is the lead sponsor of the club’s jersey, stadium and training kit.

However, City and Newcastle’s close links to state investment offer them a more extensive network of related companies — which is why rival Premier League clubs mobilised to close the loophole.

UEFA also has its own fair-market value test. City’s legal case does not address those laws and the club will still have to comply with them in European competition.

The Athletic will bring you a full breakdown of the decision and its implications in the near future.

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(Top photo: Visionhaus/Getty Images)

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Disney, ESPN to air Mickey Mouse alt-cast for Knicks-Spurs on Christmas

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Disney, ESPN to air Mickey Mouse alt-cast for Knicks-Spurs on Christmas

It will be a Mickey Mouse production for the NBA on ESPN.

On Christmas Day, the network and the league will continue the trend of presenting alternative broadcasts when the New York Knicks face the San Antonio Spurs at noon, Disney announced Wednesday.

While the traditional broadcast will be available on places like ESPN and ABC, ESPN2 will have what is being dubbed as “Dunk The Halls,” the first animated game in NBA history. Both versions will be available on the streaming services, ESPN+ and Disney+.

The presentation will utilize Sony’s “Beyond Sports Technology” by recreating the game action of stars like Victor Wembanyama and Jalen Brunson on Magic Kingdom’s “Main Street USA.” Mickey and Minnie Mouse, Donald Duck, Pluto, Goofy and Chip and Dale will cheer on the players and deliver pretend pre-game and half-time speeches.

At intermission, the Disney characters will compete in a slam dunk contest.

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After a long night of work, Santa’s helpers have been contracted to operate the cameras, while Santa, himself, will work ESPN’s “SkyCam” during the game.

Drew Carter, Monica McNutt and sideline reporter Daisy Duck will be the trio on the broadcast. The traditional telecast will feature Ryan Ruocco and Corey Alexander with Cassidy Hubbarth on the sideline.

ESPN said in its release that fans will also find out if snow will fall on “Main Street,” though it is doubtful any betting sites will take wagers (a white Christmas is a strong favorite, nonetheless). If that is not enough to entice viewers, Goofy will see how many churros he can eat.

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The telecast continues the trend of alternative broadcasts. In 2021, the NBA and ESPN teamed up with Disney Marvel characters for an alt-cast.

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(Photo: Courtesy of ESPN)

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Legendary UConn coach Geno Auriemma sets NCAA all-time wins record

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Legendary UConn coach Geno Auriemma sets NCAA all-time wins record

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Legendary UConn women’s basketball head coach Geno Auriemma made history Wednesday night with the Huskies’ victory over Fairleigh Dickinson University. 

Auriemma became the all-time wins leader in college basketball history for both men and women, collecting his 1,217th victory to pass Tara VanDerveer, the legendary Stanford Cardinal coach. 

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More than 60 former players were at Gampel Pavilion as part of a sellout crowd to watch the Huskies take down the Knights, 85-41. Despite UConn being a heavy favorite in this matchup, Auriemma went about coaching like the 1,216 wins before it, until the final buzzer sounded.

Connecticut Huskies head coach Geno Auriemma reacts in the first quarter against the Iowa Hawkeyes in the semifinals of the Final Four of the 2024 NCAA Tournament at Rocket Mortgage FieldHouse. (Kirby Lee/USA Today Sports)

The game was also a celebration of Auriemma and associate head coach Chris Dailey’s 40th season leading the Huskies. It was part of a celebration that included a goat petting zoo near the arena during a fan fest, a reference to Auriemma being the greatest of all-time. 

While the night was meant to honor Auriemma and Dailey, the win to set the new record led to reflection on just how dominant his program has been at UConn all these years. 

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GENO AURIEMMA TIES DIVISION I COACHING RECORD AS NO. 2 UCONN BEATS NO. 14 UNC 69-58

The Huskies are 11-time national champions with 23 Final Four appearances, including 15 in the last 16 years. 

Auriemma’s .882 win percentage for his career remains an NCAA record as well. 

“At the beginning, we really just had our vision and each other to say, ‘This is what we’re going to do,’” Dailey said Tuesday, via ESPN. “And we were able to convince enough people to believe that same dream. And, eventually, 40 years later, a lot more has happened than what we ever thought would have.”

Bueckers and Geno

Paige Bueckers and head coach Geno Auriemma of the Connecticut Huskies during the first half against the Duke Blue Devils in the Sweet 16 of the NCAA Tournament at Moda Center March 30, 2024, in Portland, Ore. (Steph Chambers/Getty Images)

Auriemma has only coached at one school, building his squad in Storrs to the point it was nationally recognized as a powerhouse for decades. After the team’s first national title under Auriemma in 1995, UConn was, and still remains, a powerhouse every season. 

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Auriemma, 70, still wants to coach the Huskies despite admitting to feeling at times it was the right move to walk away. 

“As long as I’m here, and I walk in this building, and I see the players here, and I see the people that work in my little world and how we all kind of motivate each other, there’s no other place I would want to be,” he said. 

Geno Auriemma

Head coach Geno Auriemma of the Connecticut Huskies celebrates after his team’s 80-73 win against the USC Trojans in the Elite Eight of the NCAA Tournament at Moda Center April 1, 2024, in Portland, Ore. (Soobum Im/Getty Images)

UConn remains unbeaten at 4-0 to start the 2024-25 campaign. 

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Sebastian Mack makes his presence felt in UCLA's win over Idaho State

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Sebastian Mack makes his presence felt in UCLA's win over Idaho State

In case anyone had forgotten about him amid all the newcomers dotting UCLA’s roster, Sebastian Mack provided a reminder with every foray toward the basket Wednesday night.

He’s still here. Dismiss him at your own risk.

On a night that the frontcourt duo of Tyler Bilodeau and Eric Dailey Jr. continued to provide a smorgasbord of offense for the Bruins, Mack was their leading scorer on the way to an 84-70 victory over Idaho State at Pauley Pavilion.

Mack contributed 21 points off the bench on the strength of 15 free throws for the Bruins (4-1), who have won three consecutive games in convincing fashion since their setback against New Mexico earlier this month.

Meanwhile, Bilodeau and Dailey continued to carry a group of starters that hasn’t gotten much offensive production from the guards. It was a similar story Wednesday, with Kobe Johnson, Lazar Stefanovic and Skyy Clark combining for just 10 points.

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Bilodeau single-handedly doubled that output with 20 points on eight-for-14 shooting, including four of four from three-point range for a team that made nine of 14 shots from beyond the arc. Dailey added 16 points while making seven of nine shots to go with seven rebounds.

Their efficiency prevented defenders from sagging off to contest UCLA’s most prolific offensive weapon, who continually drove the open lanes that invited a Mack attack. The Bengals kept fouling the sophomore guard and sending him to the free-throw line, where he made 15 of 16 attempts.

Mack’s presence alone could be considered a victory for the Bruins. He could have joined several teammates who departed in the offseason amid the influx of six transfers. He stuck it out, heeding his coach’s advice.

UCLA forward Tyler Bilodeau dribbles with his back to the basket, working to get an open shot against Idaho State Wednesday at Pauley Pavilion.

(Icon Sportswire / Icon Sportswire via Getty Images)

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“The last thing you should do,” Mick Cronin said, repeating what he told Mack. “You should stay here, let me coach the hell out of you and get everything out of you that you need to get out of you so you can become who you want to become. Choose hard. It works for people. Choose hard. Don’t choose easy.”

Mack said he trusted his coach’s promise to make him a more complete player.

“Just be able to guard, shoot, score whenever I look at my teammates,” Mack said of the things he’s working on, “just all around, pretty much.”

Mack displayed unselfishness in the first half with a lob to forward William Kyle III for a thunderous dunk that enlivened the crowd.

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After using a small lineup in the season’s early going, Cronin said he would eventually like to play the 6-foot-9 Kyle alongside the 6-foot-9 Bilodeau and 6-foot-8 Dailey to combat the larger bodies he expects to face in the Big Ten.

“When those bigger teams come,” Bilodeau said, “we’re definitely going to need the size and the strength in there.”

One possible snag is the lack of a reliable backup big man. Cronin hasn’t been happy with the performance of center Aday Mara, who had two turnovers in as many minutes Wednesday.

“Aday’s got to play better,” Cronin said, “so then we’ve got a sub.”

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Since infuriating their coach with a lack of toughness against New Mexico, the Bruins have pleased him with improved competitiveness and defensive intensity.

Next on Cronin’s to-do list? Get better at rebounding, reducing turnovers and making shots.

There was some progress Wednesday in that the Bruins made 27 of 47 shots (a season-high 57.4%) and committed a reasonable 11 turnovers. But they gave up 10 offensive rebounds after putting a lid on the basket in practice this week to emphasize boxing out.

UCLA also exhibited some defensive slippage, particularly over the final 10 minutes, after holding its three previous opponents to 50 points or fewer at home this season.

Idaho State may not have much name recognition, but the Bengals have a proud history against UCLA. Some might say they ended the Bruins basketball dynasty with a 76-75 upset over a Marques Johnson-led team in the second round of the 1977 NCAA tournament.

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John Wooden was already gone, you say? True, but the Bruins had extended their run of Final Fours the year after he retired in 1975, only for the team’s streak of 10 consecutive trips to college basketball’s biggest stage to end thanks to a flurry of points and rebounds from Idaho State’s Steve Hayes.

Senior forward Isaiah Griffin looked like he might reprise that role while scoring Idaho State’s first 12 points Wednesday. At that point, the Bengals (2-4) held a 12-10 lead and appeared like they might have a chance for a breakthrough after single-digit losses to Arizona State, USC and Cal State Fullerton.

But Bilodeau and Dailey countered with back-to-back three-pointers to spark a 10-0 run, and Mack kept attacking.

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