Manchester City begins legal action against the Premier League over sponsorship rules | Football

Manchester City have launched an all-out legal attack on the Premier League, with the four consecutive champions challenging everything from sponsorship rules to the means by which decisions are made in the competition.

City have filed a case against the league and, according to the times, an independent tribunal has been convened for next week to hear it. The tribunal will last two weeks and comes as both sides prepare for the long-awaited November hearing into City's 115 charges of allegedly breaching rules relating to financial fair play.

The city's legal challenge centers on associated party transaction (APT) rules. APTs, in which clubs strike sponsorship or revenue deals with companies linked to their owners, have been under scrutiny by the league for some time. In February The clubs voted to approve stricter rules on how such deals are valued. The city has challenged the requirement to assess the fair market value of APTs, arguing that it contravenes competition law.

The club is understood to be seeking financial compensation from the league for losses perceived from sponsorship deals that were suspended by the rules. They argue that the league has failed to demonstrate that clubs gain an unfair advantage from APTs and has previously failed to act with the same urgency to rein in the big spending of dominant teams.

In another claim that is part of the lawsuit, City takes aim at the league's voting rules. The requirement that 14 out of 20 clubs must vote in favor of any proposal for it to be adopted has long been hailed as one of the competition's strengths, meaning clubs must support any changes before they are implemented. . However, according to the Times, City's lawsuit claims that the voting system preserves “the tyranny of the majority.”

According to its report, between 10 and 12 top-flight clubs have responded to a request from the league to make submissions in support of its rules. Meanwhile, one club is reported to have given testimony in support of City's claim. The takeover of Newcastle United by Saudi Arabia's sovereign wealth fund in 2021 had previously sparked hasty attempts by clubs to change the APT rules.

The city's new legal claim was filed in February, with the first division informing their clubs of the matter in March. It will be seen as a sharp increase in hostilities between City and the competition in which they have won six of the last seven titles, and will increase pressure on the Premier League, which has been trying to address multiple governance issues following the improvement. of financial regulations. to the government's plans to create an independent regulator for English football.

The Premier League had no comment. The city has been contacted for comment.