A new report has detailed why Manchester City are launching further legal action against the Premier League, with the matter being separate from the 130 charges for alleged breaches of financial rules.
Last year, City won a legal battle against the Premier League's Associated Party Transaction (APT) rules, which assess whether deals between clubs and entities linked to their ownership represent fair market value.
City claimed that they had been the victims of 'discrimination' over the rules, and dubbed them as a 'tyranny of the majority'.
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In short, after proposed deals with Etihad Airways and First Abu Dhabi Bank were blocked in 2023, City took the Premier League to court. They claimed that the league’s APT rules were unlawful.
Back in February, The Daily Mail's Mike Keegan reported that the Premier League suffered a 'significant setback' after a tribunal deemed its sponsorship rules null and void.
And now, the same publication suggests City have launched fresh legal action against the Premier League as they claim amended sponsorship rules continue to 'discriminate' against them and give their rivals an unfair advantage.
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Those rivals include Arsenal, who they claim benefited from shareholder loans of around £259 million in 2022/23, as well as Brighton, with the Seagulls said to be benefitting from shareholder loans of approximately £406.5 million in 2021/2022.
Everton and Leicester City are also included within the 88 pages of evidence, according to the Mail.
It is said the same panel which sided with City on their original complaint will again rule. "Should City succeed for a second time it would throw the Premier League’s financial rules into disarray and once again see clubs hit with a hefty legal bill," Keegan adds.
City have played down that a small number of amendments to existing rules would be sufficient, arguing that the rules as they stand ‘fail to meet the requirements of transparency, objectivity, precision and proportionality' and are 'liable to distort competition’.
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Back in November, the Premier League issued a statement in relation to changes to the APT rules.
"The amendments to the rules address the findings of an Arbitration Tribunal following a legal challenge by Manchester City to the APT system earlier this year," it said.
“The Premier League has conducted a detailed consultation with clubs - informed by multiple opinions from expert, independent Leading Counsel - to draft rule changes that address amendments required to the system.
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“This relates to integrating the assessment of Shareholder loans, the removal of some of the amendments made to APT rules earlier this year and changes to the process by which relevant information from the League’s ‘databank’ is shared with a club’s advisors.
"The purpose of the APT rules is to ensure clubs are not able to benefit from commercial deals or reductions in costs that are not at Fair Market Value (FMV) by virtue of relationships with Associated Parties. These rules were introduced to provide a robust mechanism to safeguard the financial stability, integrity and competitive balance of the League.”
Topics: Manchester City, Premier League
Jack Kenmare