Manchester City Challenges Premier League Rules, Alleging Discrimination
Manchester City has initiated legal action against the Premier League, claiming the league’s associated party transaction (APT) rules are unlawful and discriminatory.
This move, reported by The Times, seeks to overturn regulations governing sponsorship deals with entities linked to club owners and to seek damages.
The APT rules, tightened in February, require clubs to prove that sponsorship deals reflect fair market value.
Manchester City argues these regulations unfairly target them due to their ownership and financial backing from Gulf-based entities, particularly Abu Dhabi’s Etihad Airways.
This legal battle, set to begin with a two-week arbitration hearing next Monday, could have significant implications for the financial dynamics of English football.
City’s dominance in English football, underscored by their recent fourth consecutive Premier League title, has been bolstered by lucrative sponsorships from related parties. However, the club faces 115 charges from the Premier League for alleged financial rule breaches between 2009 and 2023, with a separate hearing scheduled for November.
The Times reports that City’s legal argument includes a 165-page document asserting discrimination and a “tyranny of the majority” within the Premier League’s decision-making processes.
City claims these rules were pushed by rival clubs to protect their own commercial interests following the Saudi takeover of Newcastle United in 2021.
If City’s legal challenge succeeds, it could allow wealthier clubs to negotiate sponsorship deals without independent assessments, potentially increasing the financial disparities within the Premier League.
The case has garnered support from 10 to 12 clubs backing the Premier League’s defense, emphasizing the broad impact this ruling could have on the league’s competitive balance and financial regulations.
