Manchester City set for Legal Battle with Premier League over commercial regulations
Over a dispute concerning the league’s commercial regulations, Manchester City will face the Premier League in court next week.
The legal battle, which focuses on the associated party transaction (APT) rules that evaluate the fairness of sponsorship deals, is set to be heard by an arbitration panel from June 10-21.
Earlier this year, it was reported that the Premier League might face legal action over its rule changes, which have now led to this showdown.
The Premier League has informed its member clubs that Manchester City is challenging the rules, allowing the other 19 clubs to submit witness statements if they choose.
Requests for comments from both the Premier League and Manchester City have gone unanswered.
Yet, “The Times” has disclosed that it has reviewed a 165-page legal document in which Manchester City claims they are being “discriminated” against.
The club argues that their rivals approved the rule changes to “stifle” their success, describing it as “a tyranny of the majority.”
Manchester City, who recently made history by winning their fourth consecutive Premier League title, is entering this legal fight amidst a broader context of financial scrutiny.
Later this year, a Premier League disciplinary commission will hear over 100 charges against City for alleged financial regulation breaches, some dating back to 2009.
Several of these charges involve sponsorship payments from entities linked to Abu Dhabi.
The new rules on sponsorship deals were approved earlier this year by a majority of at least 14 Premier League clubs, with the league stating that the changes would “enhance the efficiency and accuracy of the system.”
In addition to contesting these rules, Manchester City is also seeking damages.
As the arbitration proceedings commence, the outcome of this case could have significant ramifications for the governance of commercial transactions within the Premier League and could influence the competitive and financial landscape of English football.