- Manchester City has taken ‘unprecedented legal action’ against the league
- The champions challenge the league’s Associated Party Transaction rules
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Manchester City has taken ‘unprecedented legal action’ against the Premier League in a dispute that is rocking English top-flight football.
City are still awaiting an outcome on 115 charges alleging breaches of financial regulations – which the club strongly denies – and the hearing is now scheduled for November.
But as they wait for the hearing, which is expected to last six weeks, the Premier League champions have reportedly taken legal action against the division.
According to The timesCity will seek to end the league’s Associated Party Transaction (APT) rules, which they say are illegal.
The rules – introduced in December 2021 – aim to maintain competitiveness by preventing top clubs from entering into commercial deals with companies linked to their owners.
Manchester City has taken ‘unprecedented legal action’ against the Premier League’
City wants to end Associated Party Transaction (APT) rules, which they say are illegal
City have already been investigated for their actions between 2019 and 2023, with them having to pay an £8.6 million fine for the findings
However, in a 165-page legal document, City claim the rules were adopted by rivals to stifle their on-field success as a ‘tyranny of the majority’.
If the league’s champions are successful in their hearing, it could allow the league’s richest clubs to value sponsorship deals without independent review.
City’s appeal would not only have a major impact on the league itself, but could also have a huge impact on the upcoming hearing into their alleged financial charges.
City are still awaiting an outcome on the 115 charges, including failing to provide accurate financial information between the 2009-10 and 2017-18 seasons, failing to provide accurate details of player and manager payments over the same period, and alleged offences. of the financial rules of the Premier League and UEFA.
A total of 35 relate to failures to cooperate with Premier League investigations into the matter between December 2018 and February 2023.
Sponsorship deals linked to their owner’s companies have become central to the allegations against the Manchester giants.
The first alleged breach and the one City are most accused of over claims that Manchester failed to comply with rules requiring member clubs to provide accurate financial information to the league in each season from 2009/10 to 2017/18.
This gives the FFP a ‘true and fair’ picture of a club’s income, including sponsorship deals and their operating costs, including player salaries.
Every club in the Premier League signs a code of compliance, which essentially translates into clubs agreeing to conduct themselves and provide the league with accurate and up-to-date reports that are expected to be audited every year.
In recent years, the city has been accused of inflating the value of their sponsorship, which is tied to their owners.
More to follow…