Manchester City has announced that they will be taking legal action against the Premier League regarding its financial rules. The legal challenge, in the form of arbitration, is set to be heard on Monday, as reported by The Times.
The news of the legal battle comes after reports from Sky News in February, which stated that the competition was facing potential lawsuits and had been warned by a club that changes to rules governing commercial deals between related parties could be considered unlawful.
The crux of the issue revolves around the associated party transaction (APT) regulations, which aim to ensure that any commercial deals between a club and other corporate bodies linked to club owners are conducted at a fair market price. According to The Times, Manchester City’s lawyers have issued a 165-page challenge in regards to these regulations.
The creation of these spending rules was intended to promote fair competition among elite English teams by preventing clubs from signing commercial deals at inflated prices, which would allow them to spend even more on players. These rules were first introduced in December 2021, following the controversial Saudi-led takeover of Newcastle, and were supported by the majority of clubs at the time.
Manchester City, who recently won a record-breaking fourth consecutive Premier League title, are currently facing 115 charges of breaching Financial Fair Play (FFP) rules. The club, which is owned by Abu Dhabi sovereign investors, has previously expressed their opposition to tighter APT regulations.
Both the Premier League and Manchester City have been approached for comment on the matter.
