Premier League chief Richard Masters warns clubs there will be ‘no quick fix’ to sponsorship row after Man City legal battle sparks civil war… as bosses vow to ‘take necessary time’ despite initial upbeat response
- Man City claimed Premier League victory due to sponsorship rules
- Premier League bosses appear to have changed their tune in an email to clubs
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The Premier League has warned clubs there will be no quick fix as they try to resolve the sponsorship row that has sparked a civil war in the top flight.
In what appears to be a notable change of tone, chief executive Richard Masters wrote to the parties on Friday to tell them that officials would “take the necessary time” as they try to change the rules for associated party transactions (APTs) after a successful legal challenge from Manchester. City.
On Monday, Mail Sport revealed that a tribunal found the rules – designed to prevent clubs from signing inflated sponsorship deals with companies linked to their owners – were unlawful.
City, who are currently defending themselves in a separate case involving 115 alleged breaches of top-flight financial regulations, launched the action after seeing a number of deals blocked by the system and can now seek damages from competitors.
However, in an optimistic message to clubs, delivered on the same day the verdict was announced, Masters wrote that necessary changes could be ‘resolved quickly and effectively’.
Premier League chief executive Richard Masters has told clubs that officials will ‘take the necessary time’ as they try to change associate transaction rules
Masters had initially suggested that any necessary changes could be ‘resolved quickly and effectively’ after Man City were successful in their legal challenge
This prompted Man City to warn Simon Cliff, Man City’s general counsel, in an email that further legal action could be possible, accusing the Premier League of providing ‘incorrect’ information.
That led to an angry response from City, who in an escalating move sent an email to all clubs and the league itself. They accused the Premier League of providing ‘misleading’ and ‘inaccurate’ information and the club’s legal adviser, Simon Cliff, emphatically rejected Masters’ suggestion that new rules could be adopted quickly. Cliff warned against a knee-jerk reaction and raised the prospect of further, potentially costly, legal action.
In the latest email, seen by Mail Sport, Masters thanks clubs for providing information on shareholder loans – of which the exclusion from related party transaction rules was one of the key issues identified by a panel.
He says the league now has “a comprehensive set of information and data to help inform our recommended approach and craft rule changes.”
Masters, who withdrew from a high-end golf day at Loch Lomond on Wednesday with big hitters from the Premier League’s main broadcast partners to deal with the crisis, added that the competition is “taking the necessary time to review our proposals for the club to develop. consideration’. He adds that he will be in touch on Monday with a further update, but warns that meetings scheduled for next week on financial audits and with legal advisory groups may need to be rescheduled.
The Premier League declined to comment. League insiders are encouraged by the response from clubs to their request for information following the tribunal outcome, which sent shockwaves through the competition.
An emergency meeting of clubs has been called for Thursday to discuss the implications of the hearing – and what happens next. Major names from Premier League clubs – including Cliff – are expected to attend.