Manchester City has taken the unprecedented step of launching legal action against the Premier League, alleging discrimination against Gulf ownership from rival clubs. The legal challenge centers on the associated party transaction (APT) rules, which require that sponsorship or revenue deals between a club and entities linked to their owners are conducted at fair market value. City’s case argues that the stricter APT rules, implemented in February, violate competition law and have unfairly impeded their sponsorship agreements, leading to financial losses for which they are seeking damages.
The legal team representing Manchester City claims that these rules subject the club to a “tyranny of the majority,” specifically discriminating against their Gulf ownership under Sheikh Mansour, Abu Dhabi’s deputy prime minister. A private two-week arbitration hearing, initiated by City, is scheduled to begin on Monday. This legal dispute could potentially undermine the Premier League’s 115 charges against City, some of which accuse the club of disguising owner funding as sponsorship in breach of league regulations. Manchester City denies any wrongdoing in these matters.
If Manchester City’s argument that the APT rules are unlawful prevails, it could significantly weaken the Premier League’s case against them. Currently, 12 of the other 19 Premier League clubs have expressed support for the league’s defense. Both the Premier League and Manchester City have declined to comment on the ongoing legal proceedings when approached by Standard Sport.
Post Your Comments