Man City sends letter to Liverpool ahead of important vote on Premier League rules

Manchester City has reportedly penned a letter to and all expressing their concerns over the redrafted finance rules ahead of next week's vote. The club has labelled the proposed changes to Associated Party Transaction rules [APTs] as 'unlawful'.

Both and the Premier League claimed victory in a landmark commission ruling in October, which concluded that while APT regulation was necessary, some aspects of the framework violated EU competition law. Consequently, the Premier League has been tweaking its rules.

A letter viewed by the BBC reveals that Simon Cliff, Man City's chief lawyer, . He also accuses the Premier League of hastening the consultation process, suggesting that clubs would be "voting blind".

As reported by the BBC, Cliff stated in the letter: "It is important that a new regime is grounded in rules that are fair, considered and legal. Our strong desire is to avoid any future costly legal disputes on this issue and so it is critical that the Premier League gets it right this time round."

In response to correspondence with Man City on Thursday, the Premier League said it "rejects in the strongest possible terms the repeated and baseless assertions" the club has made about the case. It denies the claim that it has misled its members.

The league has responded in its letter, asserting: "To the contrary, the league is well aware of, and takes very seriously, its obligations to act fairly and with an open mind."

It also emphasized that it has "acted fairly, transparently and responsibly in circulating considered proposals for consultation in a prompt manner". In October, the commission decided that 'shareholder loans' given to clubs should not have been omitted from spending limits.

Moving forward, these loans will be included in cost calculations and subject to interest rates, marking a change from the existing policy. A major issue highlighted by Man City's lawyer Cliff is the Premier League's suggestion that interest costs should not be retroactively applied to pre-existing shareholder loans, but only to new agreements after the implementation of the updated regulations.

Cliff contends that this approach is illegal, pointing out that it was "one of the very things that was found to be illegal in the recent arbitration". He argues that approving such a measure would "create market distortions" and therefore be "not lawful".

Furthermore, Cliff stated that while Man City are "strongly in favor of robust, effective and lawful regulation", there is a need for further dialogue as there is a disagreement on whether the current APT framework is null and void.

"Common sense dictates that the Premier League should not rush into passing amendments - particularly ones which entail material legal risk - until [it] knows the outcome from the tribunal," Cliff stated. The same letter was also sent to the Football Association as well as the clubs.

In its defence against Man City on Thursday, the Premier League said: "Throughout the consultation, the league has reflected upon all feedback provided by clubs, including from MCFC, and sought the opinion of leading counsel to consider the proposals."

"That MCFC does not agree with the proposed amendments, or with the timing of the process being undertaken, does not mean the consultation itself is deficient or that the league has failed to comply with its obligations as a regulator."

In the letter, the league also accused Man City of "a tendentious and inaccurate interpretation" of the minutes from a call held with clubs last month. It stated that the fact Man City "does not agree with the process does not provide a credible basis to impugn it".

In regards to potential further legal action, the league scorned that "such threats are meritless, and advanced without any attempt to articulate a credible ground on which MCFC could seek to restrain the consultation process".