Manchester City has launched an extensive legal challenge against the Premier League, contesting various aspects of the league’s regulations, from sponsorship rules to decision-making processes.
According to The Times, an independent tribunal has been convened to hear the case next week, with proceedings expected to last two weeks. This tribunal comes ahead of the highly anticipated November hearing concerning City’s 115 alleged breaches of financial fair play rules.
The crux of City’s legal dispute revolves around associated party transaction (APT) rules. These rules pertain to sponsorship or revenue deals between clubs and businesses connected to their owners, which have been under Premier League scrutiny for some time.
In February, Premier League clubs voted to implement stricter regulations on how these deals are valued, mandating an assessment of fair market value. Manchester City contends that these new rules violate competition law and has mounted their challenge accordingly.
Manchester City is seeking financial damages for perceived losses from sponsorship deals affected by the league’s regulations.
READ ALSO:
Israel Signs $3 Billion Agreement with U.S. for Third Squadron of F-35 Fighter Jets
The club argues that the Premier League has not demonstrated that associated party transactions (APTs) provide an unfair advantage and has been inconsistent in controlling the spending of dominant clubs.
Additionally, City’s lawsuit targets the Premier League’s voting rules, which require 14 out of 20 clubs to approve any proposal for it to be adopted. While this rule is often praised for ensuring broad consensus, City’s claim argues that it enforces a “tyranny of the majority.”
According to The Times, between 10 and 12 Premier League clubs have submitted statements supporting the league’s rules, while one club has provided testimony backing City’s claims. The legal challenge follows previous attempts by clubs to amend APT rules, notably during the 2021 takeover of Newcastle United by Saudi Arabia’s sovereign wealth fund.
City’s new legal claim was filed in February, with the Premier League notifying its clubs in March. This development marks a significant escalation in the ongoing conflict between Manchester City and the league, which is already grappling with various governance issues, including proposed financial regulation reforms and the government’s plans for an independent regulator for English football. Neither the Premier League nor Manchester City has commented on the matter.