Manchester City say Premier League commercial revenue analysis is 'unfair' | Manchester City

Manchester City are claiming that the Premier League has treated its commercial revenues unfairly by relying on analysis from a data firm that also works for its rivals. The Guardian understands that the league’s scrutiny of the fair market value of City’s deals was carried out by Nielsen Sports, a global data and media valuation company that has contracts with several top-flight clubs.

City are believed to have raised the issue of the Premier League's use of Nielsen in their legal battle over associated party transactions (APTs), where clubs strike sponsorship or revenue deals with companies linked to their owners, which was held in private last month. A decision on the landmark case is expected to be made soon, although it is unclear when it will be made public.

The club and the Premier League are also preparing to face off in an era-defining court hearing in November, in which the winners of six of the last seven league titles are accused of 115 breaches of financial fair play rules. Both sides declined to comment on either case when contacted by the Guardian. City have denied wrongdoing.

The Premier League appointed Nielsen to help oversee its APT rules when the regulations were introduced in 2021, in a move approved by clubs. The Nielsen team working for the league on the APT rules is understood to be separate from the rest of its business, an operation with eight offices around the world from Los Angeles to Melbourne.

City have launched a high-stakes court challenge against the Premier League’s introduction and enforcement of APT rules, leading to an 11-day arbitration hearing. The club voted against APT when they were first introduced three years ago and again when the rules were tightened in February this year.

City argue that the rules, designed to ensure sponsorship received from companies linked to club owners is given a fair market value, are unlawful because they breach competition law. If successful, the club will also seek financial damages from the Premier League for perceived losses from sponsorship deals blocked following Nielsen's analysis.

City are also believed to be arguing that the Premier League's APT rules are far more restrictive than UEFA's and want them relaxed. The unprecedented legal action has sparked a civil war in the top flight, with Newcastle, Chelsea and Aston Villa all supporting City but Arsenal, Tottenham and Liverpool firmly opposed to their claim.

City’s legal documents also allege that the rules were designed to “discriminate against Gulf owners”. That bold claim is based on the fact that APTs were introduced in response to the Saudi-backed takeover of Newcastle in 2021.

City posted record Premier League revenues of £712.8m last November after winning the treble, up almost £100m on the previous 12 months, and their commercial income has raised eyebrows given the size of their global fanbase compared to that of Manchester United and Liverpool. Three of City’s biggest sponsors have close links to their Abu Dhabi owners, including shirt and stadium sponsors Etihad Airways, Etisalat and Experience Abu Dhabi.

City's new legal claim was filed in February, with the Premier League notifying its clubs of the matter in March. In another element of the legal claim, City makes an explosive claim about the Premier League's well-established voting rules. The requirement that 14 of the 20 clubs must vote in favour of any proposal for it to be adopted has long been hailed as one of the competition's strengths, but in its legal documents City claim the system preserves “the tyranny of the majority”.

Manchester City, the Premier League and Nielsen declined to comment.