Manchester City are reportedly launching landmark legal action against the Premier League in a case which could have a significant impact on the 115 charges City face in relation to breaking the league’s financial regulations.
A report from The Times claims that City are arguing that the Premier League’s Associated Party Transaction (APT) rules go against competition law and are discriminatory to clubs with ties to the Gulf region and to those based outside of London.
A two-week private arbitration hearing will start on Monday to settle the dispute, which could have a significant impact both on the professional game and the charges that City face which are expected to be heard in November this year.
The APT rules were introduced in 2021 following Newcastle United’s takeover and see all sponsorship deals assessed in order to prevent clubs from inflating any deals with companies that are linked to their owners.
City will reportedly seek damages from the Premier League at next week’s hearing and have submitted a 165-page legal document which argues they are the victims of ‘discrimination’ after the rules were approved by their rivals.
Should City win their claim, it could see the Premier League’s richest clubs value their sponsorship deals without any independent assessment from the league which in turn could see vastly increased deals and a huge bump in transfer funds.
The case is also likely to have an impact on the 115 charges of alleged breaches of the Premier League’s regulations and financial rules. If the APT rules are deemed unlawful, it could significantly strengthen City’s case, with the club denying any wrongdoing.
The Premier League’s other 19 clubs have reportedly been invited to join City in the legal action, with The Times claiming 12 have put themselves forward.
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