Manchester City has reportedly initiated legal action against the English Premier League over the league’s sponsorship rules.
As reported per The times, Manchester City have drafted a 165-page legal document to challenge the league’s Associated Party Transaction (APT) rules, which the club believes are illegal. These rules are designed to prevent associated parties from agreeing to sponsorship deals that exceed fair market value. The 2021 to assume from Newcastle United to Saudi Arabia’s sovereign wealth fund PIF had already led to attempts by EPL clubs to change APT rules.
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The next step in the case will be a two-week private arbitration hearing before an independent tribunal, scheduled to begin on June 10.
The Premier League declined to comment. Manchester City did not respond Sportrequest to comment.
The lawsuit comes after the league announced it is preparing for a hearing into City’s alleged rules violations, involving 115 charges relating to the league’s financial fair play. According to a report Disclosed by the Premier League in February last year, the eight-time EPL champions violated the league’s financial rules in every season from 2008 to 2019. During this period, the team won three EPL titles (2012, 2014, 2018).
The Premier League also alleged that the club failed to comply with UEFA regulations relating to club licensing and financial fair play from 2013-2015 and during the 2017-18 season.
In 2020, Man City were banned from UEFA European competitions for alleged breaches of financial fair play (FFP) regulations. However, the Court of Arbitration for Sport annulled the sanction later that year.
Manchester City have consistently denied any wrongdoing.
In another claim forming part of the process, Man City challenged the Premier League’s voting rules, which require 14 of the 20 clubs to vote in favor of any proposal for it to be adopted. The club argues that this system preserves “the tyranny of the majority”. According to the report, between 10 and 12 top-flight clubs responded to a league request for submissions supporting its rules. Meanwhile, a club reportedly provided testimony in support of the city’s claim.
Two weeks ago, the club defeated West Ham 3-1 to claim the Premier League title for the fourth consecutive season and sixth in seven seasons.
Sport values Manchester City with US$4.75 billion, ranking sixth among the 50 most valuable football franchises in the world. Sheikh Mansour bin Zayed al Nahyan bought City in 2008 for $388.5 million.
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