Manchester City have reportedly launched unprecedented legal action against the Premier League.
The Times report that City have launched legal action to dispute financial regulations that have caused a major divide among clubs in English football’s top flight.
At a two-week private arbitration hearing starting on Monday, City will attempt to end the Premier League‘s Associated Party Transaction (APT) rules.
Introduced in December 2021 following the Saudi-led takeover of Newcastle, APT rules are designed to prevent clubs from inflating commercial deals with companies linked to their owners.
They were introduced in an effort to maintain the competitiveness of the Premier League following an increase in state ownership of clubs.
APT rules dictate that commercial deals have to be independently assessed to be of ‘fair market value’.
City claim these rules are unlawful and will seek damages from the Premier League, according to The Times’ report.
The outcome of next week’s hearing could have a significant impact on a separate hearing into City’s 115 alleged breaches of the Premier League’s financial regulations.
If City are found guilty at that separate hearing, expected to take place in November, it could result in massive fines for the club’s owners and potentially points deductions or even relegation for the Premier League champions.
City have submitted an 165-page legal document ahead of their APT rules hearing in which they argue that they are the victims of ‘discrimination’, describing the regulations they say have been approved by their rivals as a ‘tyranny of the majority’.
Man City won the Premier League for a fourth consecutive season in the 2023/24 campaign (Image: Getty)
The Times claim some of City’s rivals fear they will be successful with their legal challenge, which would enable the richest clubs to value their sponsorship deals without independent assessment – potentially massively boosting their transfer funds.
“The league’s other 19 clubs have been invited to participate in the legal action and The Times understands between ten and 12 have stepped forward, providing either witness statements or a letter detailing evidence in support of the Premier League’s defence against the claim,” added the report.
“Those who have provided witness statements may be called by the tribunal to give evidence at the hearing.”
It added: “The Times knows of at least one club that has submitted a witness statement in support of City for next week’s arbitration hearing, sources believe more than half have sided with the Premier League.”
SPORTbible has contacted Manchester City for comment. The Premier League declined to comment when approached.
Featured Image Credit: Getty
Topics: Premier League, Football, FFP