Manchester City has taken legal action against the Premier League, alleging "discrimination," a move that could significantly impact the English top flight, The Times reported on Tuesday.
The recently crowned champions are reportedly seeking to abolish the league’s associated party transaction (APT) rules, which they claim are unlawful, and are also pursuing damages. These APT rules, tightened in February, regulate clubs' sponsorship deals with companies linked to their owners.
According to The Times, the dispute between City and the Premier League will be resolved through a two-week arbitration hearing starting next Monday. City, owned by Abu Dhabi, secured their fourth consecutive Premier League title last month, demonstrating their dominance in English football over the past decade. Their swift rise has been supported by sponsorship deals with Gulf-based entities, such as Etihad Airways, which sponsors both the club's stadium and shirts.
In a separate case, City faces 115 Premier League charges for alleged breaches of financial regulations between 2009 and 2023—charges the club strongly denies. This hearing is reportedly scheduled for November.
The APT rules are designed to maintain competitiveness in the Premier League, requiring clubs to prove that their commercial deals represent fair market value. City, in a 165-page legal document, argues that they are victims of "discrimination" and a "tyranny of the majority" meant to stifle their success.
All changes to Premier League rules and major proposals require the approval of at least two-thirds of the voting clubs, or 14 out of 20. Should City prevail in their legal challenge, the wealthiest clubs could set their sponsorship deal values without independent verification, potentially widening the financial gap within the league.
The Times reported that between 10 and 12 clubs have provided witness statements or letters supporting the Premier League's defense against City's claims. City is suing the Premier League for damages, citing losses due to the current rules. They argue that these rules were implemented by rival clubs to "safeguard their own commercial advantages" following the Saudi takeover of Newcastle in 2021.
City has accused rival teams of "discrimination against Gulf ownership," referencing comments from a senior club executive, as reported by The Times.
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