MANCHESTER CITY has triggered a “civil war” after filing unprecedented legal action against the Premier League.
The Times report City are attempting to end the league’s Associated Party Transaction (APT) rules, which they claim are unlawful and will seek damages from the Premier League.
GettyMan City have taken unprecedented legal action against the Premier League[/caption]
The rules were first introduced in 2021 following Newcastle’s Saudi-led takeover.
They are designed to maintain competitiveness within the Premier League by preventing clubs from inflating commercial deals with companies linked to their owners.
Such transactions have to be independently assessed to be within fair market value (FMV).
However, in a 165-page legal document, City argue they have been the victims of “discrimination” under league rules approved by a “tyranny of the majority” that their rivals have voted for which are designed to stifle their success.
If the Premier League champions are successful in their claim, it may allow the richest clubs to value their sponsorship deals without independent assessment.
This would enable them to vastly boost the amount of money they can raise and therefore give them greater sums to spend on players.
Some rivals are said to be fearful that the claim will be successful.
And it would have major implications for the outstanding alleged 115 financial breaches already levelled against the club, with Abu Dhabi companies linked to City central to the accusations against them.
The charges relate the alleged concealment of payments made by owner Sheikh Mansour through third parties disguised as sponsorship revenue which was inflated.
Even prior to the tightening of the regulations, the Prem required third party transactions to comply with FMV.
If City win this case, it could significantly strengthen their defence at the hearing into their alleged breaches – which they have always denied any wrongdoing over – later this year.
A two-week arbitration hearing into the claim will begin on Monday.
The Premier League’s other 19 clubs have been invited to participate in the legal action, with the report adding that between ten and 12 have stepped forward to participate.
These clubs will provide either witness statements or a letter detailing evidence in support of the Premier League’s defence in the case.
Clubs providing witness statements may be called by the tribunal to give evidence at the hearing.
Pep Guardiola set for final Man City season
By Martin Blackburn
AFTER eight glorious years of stability, Manchester City now head into an uncertain 12 months.
And Saturday’s FA Cup final defeat to neighbours United was a reminder that this glittering and unforgettable era will not go on for ever.
Around this time in 2025, City will be preparing for the highly-lucrative Fifa Club World Cup in the US.
Yet in all likelihood they will also be getting ready to say their goodbyes to manager Pep Guardiola, who has brought so much success to the east side of Manchester.
Meanwhile, there could be a verdict on 115 charges of financial irregularity which have been levelled at the club by Premier League chiefs.
The suggestion is the hearing could start later this year but is likely to take several months to reach a conclusion.
City continue to deny any wrongdoing and are confident they will be cleared by the independent commission.
Read Martin Blackburn’s full column here.
More to follow.
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