Manchester City launches legal challenge vs Premier League

Manchester City has launched a legal challenge against the Premier League, and its rules on associated party transactions (APTs).

The action is separate from the 115 charges that the Premier League earlier this season levied against the Manchester club. Rulings and sanctions under the Premier League’s charges have yet to be announced by the league.

Taking its own action against the Premier League, City is arguing that the APT rules are unlawful and violate competition law.

APT rules require that sponsorship and revenue deals with businesses linked to club owners be independently assessed to ensure they are of fair market value.

Abu Dhabi owned, and Etihad-sponsored Manchester City meanwhile contends that the Premier League rules resulted in significant revenue losses to the club, and it is seeking financial damages.

The APT rules were introduced in 2021 to ensure fairness and transparency.

An independent tribunal is expected to hear Manchester City's case next week.

The football club is expected to argue that the league's financial rules are unlawful and they are incompatible with UK competition law, and it also claims that the rules are described by City as “discriminatory and detrimental” to the club’s financial interests.

Manchester City’s 115 Premier League charges of financial rule-breaking are expected to be heard in November.

The Premier League has so far not commented on the legal dispute.