Manchester City have always been aware that they cannot defeat the Premier League over associated-party-transaction rules alone.
Now, however, it is five rather than six allies needed after Aston Villa’s sudden emergence as a chief cheerleader in the rebel camp.
New regulation proposals to be put forward to all 20 top-flight clubs at a vote on Friday suddenly appear on a knife edge.
A two-thirds majority is required to approve regulation changes among the 20 clubs, meaning it will take seven to vote against them – though potentially fewer if others choose to abstain.
City have already made significant inroads securing support. Newcastle United, Wolverhampton Wanderers, Nottingham Forest and Everton have all previously aligned with the reigning champions in opposing plans to toughen up APT rules.
Those with understanding of City’s position are confident most of those clubs – despite some uncertainty amid Everton’s takeover – are ready to rally behind them again. But the emergence of Villa as a tag-team partner shifts significant momentum ahead of what is increasingly viewed by clubs as a vote too close to call.
City’s new ally
Villa’s letter came as a surprise, but support for City did not come out of the blue. Over 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 has developed to the point that he relocated the head office of his family business, NNS Group, from London to Abu Dhabi’s Global Market financial centre.
In what could prove key to City’s lobbying hopes, Sawiris is believed 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 adopted working home.
So why would Villa look in favour of City’s battle against APTs? Tuesday’s revelation of the letter sent by the Birmingham club to the Premier League and the 19 other teams laid out three clear concerns: that new rules will be legally challenged by City, that the tribunal which initially ruled on the case is yet to release its full judgment, and that the imminent intervention of an independent football regulator could move the goalposts even further.
But there is far more than meets the eye on this particular battleground. Villa’s letter also highlighted the concern with 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 dogged by in-fighting, information leaks and legal disputes – and that is before the hearing into City’s 115 charges reaches a conclusion.
Two big moments in Villa’s recent history will have influenced their decision-making on APTs. The first, and more obvious one, is last season’s qualification for the Champions League means the club are a much more attractive proposition for any sponsors or wannabe investors.
Success on the pitch to the level of Villa’s top-four finish opens doors to previously unattainable opportunities, with elite European football a good guarantee of increasing long-term commercial income. Tighter restrictions on APTs would, in theory, potentially affect any deal Villa’s holding company V Sports may try to line up with a related party.
Villa have gradually become more aligned with the City blueprint since July 2018, however, when V Sports agreed to take ownership of Villa by purchasing a controlling stake from previous owner, the Chinese businessman Tony Xia, before completing a full takeover the following year.
That deal, completed by Sawiris and American billionaire Wes Edens, installed Egypt’s richest man as chairman and set them on a clear upward trajectory that culminated in the appointment of current head coach, Unai Emery, subsequent Champions League qualification and the opening of those lucrative doors.
Unknowingly at the time, it also brought Villa under a multi-club ownership model – something that is becoming increasingly popular across the Premier League. Last year V Sports purchased a 29 per cent stake in Portuguese club Vitoria SC, and has also constructed partnerships with clubs in Egypt, Japan and Spain.
City will feel emboldened by the support
Last December, it also secured investment from Atairos in Villa as a minority stakeholder, before the US Investment company then took a stake in V Sports itself in October, to the tune of £50 million. Those funds were pumped into Villa, increasing its stake in the club to 31.1 per cent, not far off the 34.4 per cent that both Sawiris and Edens each own.
With the V Sports web now cast around the globe and gathering financial strength, and Sawiris known to be a believer in a free market, an alliance with City always felt possible.
Villa had already sided with City in votes around financial rules in the past six months. In June, Sawiris told the Financial Times he was contemplating a formal complaint against the profitability and sustainability rules for being “anti-competitive”. “The [PSR] rules do not make sense and are not good for football,” he said.
Tuesday’s letter reaffirmed those beliefs and, although Villa have stressed the need for a 90-day postponement on any vote, the blue half of Manchester will have felt immediately emboldened in their position upon receipt of the latest club-wide communication.
