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Premier League rule change could shake up English soccer

Manchester City’s potential legal action against the Premier League could reshape English soccer. With concerns about excessive spending, the removal of Associated Party Transaction (APT) rules might lead to unprecedented financial indulgence, potentially undermining competition. City, already dominant, could further solidify its position with fewer rivals able to keep up. The league introduced APT rules after Newcastle’s acquisition by Saudi Arabia’s Public Investment Fund to ensure fair market value in commercial deals. City’s challenge suggests discrimination and could impact sponsorship regulations, potentially distorting revenues. This poses challenges to profit and sustainability regulations, allowing clubs to make significant losses over three years. City faces allegations of rules breaches, risking penalties. Despite a previous UEFA ban being overturned, excessive spending could widen the gap between clubs. To address this, a spending cap and anchoring system limiting spending based on league earnings are under discussion. These measures aim to enhance competitiveness and financial stability in the league.

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