City Football Group announce new APT deal after Man City 'unlawful' vote attempt
As Manchester City challenge the Premier League over Associated Party Transaction (APT) rules in England, City Football Group have announced their latest lucrative Etihad Airways sponsorship deal with sister club New York City FC.
APT regulation is a contentious subject after both City and league officials claimed victory in a landmark commission ruling in October. This concluded that while there is a requirement, some elements of the framework breached EU competition law.
Top-flight clubs are expected to vote on the introduction of the Premier League's proposed revisions at their shareholder meeting in London tomorrow, though City have lobbied to have further revisions made and the matter settled at a later date.
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A letter from the club's chief lawyer, Simon Cliff, is said to claim the newly-drafted proposals still contravene the judgement passed by the commission, saying the amendments are 'not lawful' accusing league officials of rushing through the consultation process meaning tomorrow clubs will be 'voting blind'. Aston Villa have since come out in support of City's argument, though as a minimum seven member clubs will need to vote against the latest revisions in order to have them fail.
Since coming under the ownership of Sheikh Mansour and the Abu Dhabi United Group, through their subsidiary City Football Group, have struck partnerships with companies with ties to their Gulf state owners. The most lucrative of those is with Etihad Airways - owned by the Abu Dhabi government through the wealth fund ADQ.
In the latest revision of a deal in place since 2009, they reportedly pay £80m per year to have their name front and centre on the club's kits and for the naming rights of the club's 53,000-seater stadium. City Football Group is a multi-club venture, with another franchise falling under their remit being New York City FC.
Etihad Airways have been their shirt sponsor since their inception in 2013, and now NYCFC have confirmed the national airline of Abu Dhabi will become the sponsor name of their new state of the art 25,000-seater venue. The stadium in Willets, Queens, which is expected to open in time for the 2027 Major League Soccer campaign, will be named Etihad Park as part of the new 20-year arrangement.
"This is an historic announcement for New York City FC, Etihad Airways, and New York City. Etihad Airways has been a fantastic partner to the Club for over a decade, and we are proud to call Etihad Park the home of our great Club," Brad Sims, New York City FC CEO, said.
"For over a decade, we’ve been investing in New York with a vision of building the city into one of the soccer capitals of the world. Etihad Airways has been alongside us every step of the way and we’re thrilled to be making this announcement with them.
"Etihad Park will be the physical evidence of our deep and longstanding investment in New York City and will become a cathedral of soccer in the United States."
Echoing Sims' sentiment, Etihad Airways CEO Antonoaldo Neves added: "We are delighted to sponsor the naming rights of this fantastic venue, which I am sure will become a landmark sports destination in the US. We have been backing New York City FC since the start in 2014 and this marks the latest chapter in our support for the Club.
"Our values as an airline align perfectly with New York City FC and their commitment to New York City, through promoting soccer in the local neighbourhoods and providing spaces for everyone to play."
Notably, the club and airline clarify that no external brokers were involved in the deal as it was 'jointly facilitated in-house by New York City FC and City Football Group partnership teams'.