Manchester City has initiated a new legal challenge against the Premier League over the recent amendments to the league’s sponsorship rules, which the club argues are “unlawful.”
This latest challenge follows a ruling last year by an independent arbitration panel that found certain aspects of the Premier League’s Associated Party Transaction (APT) regulations to be unfair. The APT rules are designed to prevent clubs from engaging in sponsorship deals with companies linked to their owners that are considered to be above market value.
In November 2024, a majority of Premier League clubs voted to approve changes to the APT rules, despite opposition from Manchester City. The club has now launched another arbitration process, seeking a declaration that the recent amendments to the APT rules, which were approved by the majority of clubs, are unlawful and should be voided.
Richard Masters, Premier League chief executive, confirmed in a letter to clubs that City began the new arbitration challenge on January 20, 2025. Masters expressed the league’s confidence that the amendments were lawful and fully compliant with competition laws, asserting that the APT rules remain valid and enforceable.
The legal dispute began when an earlier tribunal ruled that low-interest shareholder loans should be subject to the APT rules and that tougher regulations were also found to violate competition law. Manchester City criticized the Premier League’s attempt to amend the rules, warning that changes would undermine the arbitration ruling, especially regarding shareholder loans, which had been deemed illegal in the previous decision.
Despite City’s opposition, the Premier League pressed ahead with the changes, even though clubs like Newcastle, Nottingham Forest, Aston Villa, and City itself voted against the amendments.
A two-day hearing was held last week, with both the Premier League and Manchester City making submissions regarding the original ruling’s impact. The panel overseeing the case is still deliberating on the matter.
This ongoing legal battle between Manchester City and the Premier League has already incurred substantial legal costs for both parties. In addition, the club is awaiting the outcome of a significant disciplinary hearing, where it faces over 100 charges related to alleged financial rule violations. City has denied any wrongdoing.
The timing of this new legal challenge coincides with the upcoming first shareholder meeting of 2025, where Premier League clubs are expected to discuss key issues. Neither Manchester City nor the Premier League has made any further comments on the matter.
SOURCE: BBC
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