Manchester City have launched a legal battle against the Premier League, challenging the league’s financial rules and accusing them of discrimination and tyranny.
The club has filed a 165-page legal document, seeking to overturn the Associated Party Transaction (APT) rules, which they claim are unlawful and aimed at curtailing their success.
The APT rules, introduced in 2021, require clubs to ensure that sponsorship deals with firms linked to their owners are independently deemed to be of “fair market value” (FMV).
Manchester City claims that these rules are restrictive, anti-competitive, and discriminate against Gulf ownership.
They argue that the rules were instigated by rival clubs to safeguard their commercial advantages and limit deals from outfits in the Gulf region.
The club has enlisted three KCs to their legal team and is seeking damages for losses incurred due to the “unlawfulness” of the FMV rules.
They claim that the rules have prevented them from monetizing their brand in the same way as their cross-town rivals, Manchester United, and that they will be forced to increase ticket prices, cut spending on community programs, youth development, and women’s football if the rules are not overturned.
The Premier League has asked clubs for witness statements to back their argument, with between 10 and 12 clubs stepping forward to assist the competition.
At least one club has come forward to support Manchester City.
The hearing is set to begin on June 10 and could have wide-ranging ramifications on the 115 charges aimed at Manchester City for alleged breaches of the league’s financial rules.
This legal battle has sent shockwaves through the football world, with some clubs picking sides and others calling for greater transparency and clarity on the system.
The outcome of this case could have significant implications for the future of football finance and the balance of power in the Premier League.