Manchester City has always been aware that it cannot beat the Premier League based on associated party transaction rules alone.
Now, however, five allies rather than six are needed after Aston Villa’s sudden emergence as leader of the rebel camp.
New regulatory proposals that will be put to the 20 top clubs in a vote on Friday suddenly appear on a knife’s edge.
A two-thirds majority is required to approve regulatory changes among the 20 clubs, meaning it will take seven to vote against – but potentially fewer if others choose to abstain.
City have already made significant progress in securing support. Newcastle United, Wolverhampton Wanderers, Nottingham Forest and Everton have all already aligned themselves with the reigning champions to oppose plans to toughen APT rules.
Those who understand City’s position are convinced that most of these clubs – despite some uncertainty linked to the Everton takeover – are ready to rally behind them again. But Villa’s emergence as a team partner significantly shifts their momentum from what is increasingly seen by clubs as a vote too close to call.
The city’s new ally
Villa’s letter came as a surprise, but the support for City did not come out of nowhere. During the summer, Telegraph sport highlighted the strengthening relationship between Villa’s majority owner, Egyptian billionaire Nassef Sawiris, and Abu Dhabi, with plans for a new “long-term commitment” to the UAE capital announced last December.
Sawiris’s relationship with the Middle Eastern state grew to the point that he moved the headquarters of his family business, NNS Group, from London to the Global Market financial center in Abu Dhabi.
In what could prove key to City’s lobbying hopes, Sawiris is said to enjoy a warm relationship with City chairman Khaldoon Al Mubarak, which is only expected to grow closer as he spends more time in his new home work adopted.
So why would Villa be supportive of City’s battle against the APTs? The revelation on Tuesday of the letter sent by the Birmingham club to the Premier League and 19 other teams highlighted three clear concerns: that the new rules will be legally challenged by City, that the court which initially ruled on the case has not yet delivered its full opinion. judgment, and that the imminent intervention of an independent football regulator could move things even further.
But there is much more than meets the eye on this particular battlefield. Villa’s letter also highlighted concern over how the civil war between City and the Premier League is affecting the wider perception of English football, with the world’s most powerful league grappling with infighting, leaks information and legal disputes – and this before the hearing. on City’s 115 charges comes to a conclusion.
Two big moments in Villa’s recent history will have influenced their decision-making regarding APTs. The first, and most obvious, is that last season’s qualification for the Champions League means the club is a much more attractive proposition for any budding sponsor or investor.
Success on the pitch until Villa reaches the top four opens the door to previously inaccessible opportunities, with elite European football a good guarantee of increased commercial income in the long term. Tighter restrictions on APTs could, in theory, affect any deal Villa’s holding company, V Sports, might attempt to strike with a related party.
However, Villa have gradually aligned themselves with City’s plan since July 2018, when V Sports agreed to take ownership of Villa by buying a majority stake from previous owner, Chinese businessman Tony Xia, before finalize a full takeover the following year.
This deal, struck by Sawiris and American billionaire Wes Edens, installed Egypt’s richest man as president and set them on a clear upward trajectory that resulted in the appointment of the current head coach, Unai Emery, to further qualification for the Champions League and opening those lucrative doors. .
Unknowingly at the time, this also put Villa under a multi-club ownership model – something which is becoming increasingly popular in the Premier League. Last year, V Sports acquired a 29 percent stake in Portuguese club Vitoria SC and also formed partnerships with Egyptian, Japanese and Spanish clubs.
City will feel emboldened by the support
Last December he also secured an investment from Atairos in Villa as a minority shareholder, before the US investment firm itself took a £50m stake in V Sports in October. sterling. These funds were injected into Villa, increasing his stake in the club to 31.1 percent, not far from the 34.4 percent that Sawiris and Edens each own.
With the V Sports network now broadcast globally and gaining financial strength, and Sawiris known as a free-market supporter, an alliance with City always seemed possible.
Villa had already sided with City in votes on financial rules over the past six months. In June, Sawiris told the Financial Times he was considering filing a formal complaint against the profitability and sustainability rules for being “anti-competitive”. “THE [PSR] the rules make no sense and are not good for football,” he said.
Tuesday’s letter reaffirmed these beliefs and, although Villa stressed the need for a 90-day delay for any vote, the blue half of Manchester will have immediately felt emboldened in their position upon receipt of the latest communication to the club scale.