Manchester City sue Premier League as bitter battle takes new twist

Manchester City is embarking on an extraordinary legal confrontation with the Premier League by filing a lawsuit.

According to the Times, a confidential arbitration session lasting two weeks will commence on Monday as City aims to challenge and abolish the league’s Associated Party Transaction (APT) regulations while also pursuing compensation from the Premier League.

The rules regarding the impending legal case pertain to the legislation implemented after Newcastle’s acquisition by Saudi Arabia in December 2021, aiming to prohibit clubs from profiting from exorbitant commercial agreements with businesses associated with the club’s ownership.

It has been noted that four out of the club’s top 10 sponsors are connected to the United Arab Emirates, notably including Etihad Airways.

According to The Times, Manchester City is objecting to these regulations, claiming to be victims of discrimination in a 165-page legal filing. The club submitted their complaint on February 16th.

Additionally, other Premier League teams have been asked to join the proceedings, with City alleging that their competitors supported the regulations in order to hinder their performance on the field and discriminate against ownership from the Gulf region due to the timing coinciding with the Newcastle takeover.

The League operates under a unique structure that requires a minimum of two-thirds (equivalent to 14 clubs) to approve any modifications to the rules.

City is currently embroiled in a separate legal dispute, with a forthcoming hearing scheduled for November regarding the club’s purported 115 violations of the Premier League’s regulations and Financial Fair Play principles (FFP).

Failure to accurately disclose financial information and reports regarding player and manager compensation from 2009-10 to 2017-18, as well as violations of financial regulations set by the Premier League and Uefa, are among the issues raised. Additionally, there are allegations of non-cooperation with Premier League investigations from 2018 to 2023.

The club has vehemently refuted all accusations since they were initially made public at the beginning of the investigation in 2018.

The upcoming November hearing, anticipated to span six weeks, may result in penalties such as fines, point deductions, or additional sanctions for Pep Guardiola’s team.