Manchester City launch legal action against Premier League commercial rules: Report

LONDON – Manchester City have commenced legal action against the English Premier League alleging “discrimination” in a move that could have far-reaching consequences for the English top flight, The Times reported on June 4.

The publication said the recently crowned champions would try to end the league’s associated party transaction (APT) rules, which they are understood to claim are unlawful, and seek damages.

The Premier League tightened rules regarding APTs, relating to clubs signing sponsorship deals with companies linked to their owners, in February.

The Times added that the dispute between City and the Premier League would be settled after a two-week arbitration hearing starting on June 10.

Abu Dhabi-owned City sealed a fourth straight Premier League title in May, underlining their domination of the English game over the past decade.

Their rapid rise has been aided by sponsorship deals with a series of Gulf-related parties. Abu Dhabi-based Etihad Airways is both City’s stadium and shirt sponsor.

In a separate case, City, managed by Pep Guardiola, are facing 115 Premier League charges for alleged breaches of regulations and financial rules between 2009 and 2023 – charges they strongly deny.

That hearing is reportedly set for November.

Sky Sports News chief reporter Kaveh Solhekol explained: “The charges and this case are two separate things.

“The 115 charges have been brought by the Premier League against Man City for allegations that they have broken the league’s financial rules over 12 or 13 years.

“The hearing into those charges is set for November but obviously, a lot of those charges are also to do with sponsorship deals, deals that were done with companies that are connected to the owners of Manchester City.

“So, if Man City win this case, which starts next week, that would blow a big hole in the Premier League’s case at the hearing in November about the 115 charges because Man City would have argued successfully next week that some of these rules are unlawful and incompatible with UK competition law.”

APT rules are designed to keep the Premier League competitive, requiring clubs to prove that commercial deals represent fair market value.

The Times report said City, in a 165-page legal document, argue they are victims of “discrimination” and refer to a “tyranny of the majority” aimed at stifling their success on the pitch.

All Premier League rule changes and major broadcast and commercial proposals require the approval of at least two-thirds of those who vote, or 14 of the 20 clubs.

If City are successful in their legal fight, it could enable the richest clubs to value their sponsorship deals without independent assessment, further widening the financial gulf within the top flight.

The Times said between 10 and 12 clubs had come forward, providing either witness statements or letters detailing evidence, in support of the Premier League’s defence against City’s claim.

The report said City are suing the Premier League for damages, referring to losses incurred as a result of the existing rules.

City say the rules were imposed at the instigation of rival clubs reacting to the Saudi takeover of Newcastle, which took place in 2021, with the aim to “safeguard their own commercial advantages”, according to the report.

City have accused rival teams of “discrimination against Gulf ownership”, citing the comments of one senior club executive, The Times said.

Meanwhile, City chairman Khaldoon Al-Mubarak is confident of finding the “right solution” regarding Guardiola’s future at the club, although he has not said what that would look like.

The Spanish manager, whose contract runs until 2025, cast doubt over his continued stay at the Etihad after their historic Premier League feat, admitting it is difficult to find motivation after so much sustained success.

Guardiola’s time at City since his arrival in 2016 has been marked by relatively short contracts, meaning his future beyond the end of next season remains uncertain.

“With Pep, we’ve had this conversation many times before over the years of the contract,” Al-Mubarak told the club’s media channels on June 5 in his end-of-season review. “Pep has always been fully committed to this club, fully committed to every contract he’s signed with us.

“The decision on his future is always a decision we take together, and I have no doubt we will find, as we always have done, the right solution that works for Pep and works for us.” AFP