Manchester City have launched a legal case against the Premier League, challenging its sponsorship rules as the means by which decisions are taken by the league.
According to the Times, which claims to have seen a 165-page legal document prepared by the club, an independent tribunal has been convened for next week to hear City’s case. The tribunal is set to last two weeks and comes as both sides are preparing for November’s long-awaited hearing on City’s 115 charges of alleged rule-breaking related to financial fair play.
City’s legal challenge reportedly centres on associated party transaction (APT) rules. APTs feature clubs striking sponsorship or revenue deals with businesses linked to their owners, such as City shirt and stadium sponsor Etihad Airways, which is the flag carrier of Abu Dhabi, where City’s owner Sheikh Mansour is vice president and a key royal.
They have been the subject of much scrutiny from the league, and In February clubs voted to approve tougher rules regarding how such deals are valued. A requirement to assess fair market value for APTs has been challenged by City, who argue it contravenes competition law.
The club are understood to be asking for financial damages from the league for perceived losses from sponsorship deals that were halted by the rules. They argue that the league has not been able to prove that clubs get an unfair advantage from APTs and that it has previously failed to act with the same urgency to control big spending by dominant sides.
In another part of the suit, City challenge the league’s voting rules. The requirement that 14 of 20 clubs must vote in favour of any proposal in order for it to be adopted has long been hailed as one of the competition’s strengths, meaning that clubs must align behind any change before it is implemented. According to the Times, however, City’s suit claims the voting system preserves “the tyranny of the majority.”
According to the report between 10 and 12 top flight clubs have responded to a league request for submissions in support of its rules. One club is reported to have given testimony in support of City’s claim.
City’s new legal claim was filed in February, and Premier League clubs were informed of the action in March. The new legal challenge is the latest outbreak of hostilities between City and the league in which they have won six of the past seven titles, including the last four in a row.
Manchester City have been approached for comment, while the Premier League declined to comment when approached.
