Manchester City is gearing up for a legal skirmish with the Premier League. The Times disclosed these exclusive details.
The crux of the legal battle lies in the league’s Associated Party Transaction (APT) policies concerning deals with firms tied to club owners. These rules insist on independent evaluation to ensure deals reflect fair market value, which has stirred quite the debate.
In February, club representatives green-lighted stricter valuations for such deals. Initially set in December 2021 after Newcastle United’s acquisition by the Saudi Arabian Public Investment Fund, these norms aim to curb inflated commercial contracts with owner-linked enterprises.
According to The Times, City deems these regulations “unlawful” and seeks reparations for thwarted revenue these rules caused. In a 165-page legal manifesto, City cites “discrimination” and lambasts the Premier League’s decision-making formula where a “tyranny of the majority” prevails—requiring 14 of 20 clubs’ approval.
The wrangle will unfold in a two-week, cloistered arbitration starting Monday.
The other 19 clubs received invites to partake in the proceedings; about half have contributed via witness statements or supportive evidence for the Premier League’s stance.
The verdict from this dispute could sway the November hearing on City’s 115 alleged violations of financial fair play rules.
