Manchester City Premier League. | © Twitter (@CITYFitss)
Manchester City has taken strong legal action against the Premier League. The four-time consecutive champions are disputing everything from sponsorship rules to how decisions are made in the competition.
City has filed a lawsuit against the league, and as reported by the Times, an independent tribunal has been arranged for next week to address it. The tribunal is scheduled to last for two weeks. This development comes as both parties are getting ready for November’s highly anticipated hearing regarding City’s alleged rule violations related to financial fair play, which amount to 115 charges.
City’s legal challenge focuses on associated party transaction (APT) rules. APTs involve clubs making sponsorship or revenue deals with businesses connected to their owners. These deals have been under the league’s spotlight for a while. In February, clubs agreed to stricter rules on how these deals are valued. City is contesting the requirement to assess fair market value for APTs, arguing that it goes against competition law.
The club is believed to be seeking financial compensation from the league for what they see as losses due to sponsorship deals being stopped by the rules. They claim that the league hasn’t shown that clubs gain an unfair advantage from APTs. They also argue that the league hasn’t acted as swiftly to regulate big spending by dominant teams in the past.
In another aspect of the lawsuit, City is challenging the league’s voting rules. The rule stating that 14 out of 20 clubs must approve any proposal for it to be accepted has been praised as a strength of the competition. This means that clubs must unite behind any change before it can happen. However, according to the Times, City’s lawsuit argues that the voting system maintains “the tyranny of the majority.
It seems there’s been some activity surrounding a league’s request for submissions regarding its rules, with several top-flight clubs responding. Additionally, one club has reportedly provided testimony in support of a claim made by City. This activity appears to be connected to the takeover of Newcastle United by Saudi Arabia’s sovereign wealth fund in 2021, which prompted other clubs to quickly try to change the APT (Asset Protection Trust) rules. It sounds like there may be some legal or regulatory implications at play here.
It appears that City’s new legal claim was filed in February, and the Premier League made its clubs aware of the matter in March. This development marks a significant escalation in the tensions between City and the Premier League, particularly considering City’s dominance in recent years with six out of the last seven titles. This legal dispute adds further pressure on the Premier League, which is already dealing with various governance issues, ranging from enhancing financial regulations to potential government intervention with plans for an independent regulator for English football.
