Man City launch new legal fight against Premier League amid 115 charges battle
Manchester City have launched a new legal challenge over sponsorship deals in Pep Guardiola’s reigning champions’ ongoing fight against the Premier League
Manchester City have launched a fresh legal battle against the Premier League over its sponsorship rules.
City have been in a legal dispute with the Premier League over their alleged 115 breaches of profit and sustainability (PSR) rules.
However, City’s latest legal challenge relates to sponsorship deals. According to the Daily Mail, lawyers for the club have informed the league that they will seek an arbitration hearing over amendments made to associated party transaction (APT) regulations.
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City have already secured a victory of the Premier League in regards to APT regulations – when an arbitration panel found elements of rules on deals with parties linked to clubs were ‘unlawful’ late last year.
The Premier League swiftly made a number of amendments, which were then voted through by a majority of its clubs.
A statement read: “The amendments to the rules address the findings of an Arbitration Tribunal following a legal challenge by Manchester City to the APT system earlier this year.
“The Premier League has conducted a detailed consultation with clubs – informed by multiple opinions from expert, independent Leading Counsel – to draft rule changes that address amendments required to the system.
“This relates to integrating the assessment of Shareholder loans, the removal of some of the amendments made to APT rules earlier this year and changes to the process by which relevant information from the League’s ‘databank’ is shared with a club’s advisors.
“The purpose of the APT rules is to ensure clubs are not able to benefit from commercial deals or reductions in costs that are not at Fair Market Value (FMV) by virtue of relationships with Associated Parties.
“These rules were introduced to provide a robust mechanism to safeguard the financial stability, integrity and competitive balance of the League.”
Simon Cliff, City’s legal counsel, warned of further action at the time – saying that new rules had been rushed through in a letter to Premier League clubs
