The battle between Manchester City and the Premier League just took another turn, and it’s getting even more intense.
The reigning champions have launched a fresh legal challenge, this time targeting the league’s regulations on sponsorship deals.
This move adds another layer to an already ongoing legal feud that has shaken up English football.
A New Arbitration Battle on the Horizon
Manchester City’s legal team has officially informed the Premier League that they will seek an arbitration hearing over recent amendments to the associated party transaction (APT) rules.
These rules, which govern financial deals between clubs and their connected entities, have been a major point of contention.
Previously, City had already won a partial victory when an arbitration panel ruled that some aspects of these regulations were unlawful.
However, in response, the Premier League swiftly introduced changes and secured approval from a majority of its clubs.
City, however, believes these changes still fall short of fairness and is now taking legal action once again.
City’s Concerns Over New Regulations
The heart of City’s complaint lies in how financial transactions, particularly shareholder loans, are treated under the new rules.
The original arbitration panel had criticized the Premier League for failing to subject these loans to the same fair market valuation as commercial deals.
This loophole allowed clubs like Arsenal and Liverpool to benefit from financial injections without facing additional scrutiny.
The new rules now exempt existing shareholder loans from being retrospectively reassessed, meaning clubs that previously received such funding won’t have to pay retrospective fees.
City argues that this creates an unfair system that continues to favor certain teams while penalizing others.
Led by Lord Pannick KC, City’s legal team maintains that these amendments remain discriminatory.
Premier League Stands Firm
Despite City’s challenge, the Premier League remains confident in its stance.
Chief Executive Richard Masters has reassured clubs that the amendments passed in November comply with all competition law requirements.
In a letter sent to club executives, Masters emphasized the league’s commitment to resolving the matter swiftly, stating that the same tribunal will oversee this fresh arbitration case.
A Divided League and More Legal Fireworks
The Premier League’s new APT regulations were approved by a 16-4 vote in November, with City receiving support from Aston Villa, Nottingham Forest, and Newcastle United.
Before the vote, Villa even warned clubs that approving the changes would lead to immediate legal action from City—a prediction that has now come true.
City’s legal battle initially began last June after the Premier League rejected a proposed sponsorship deal with Etihad Airways, deeming it unfairly inflated.
Now, with a new arbitration case looming, tensions are set to rise even further at the upcoming Premier League shareholder meeting.
What’s Next for Manchester City?
With no timeframe yet set for a hearing, this legal dispute could drag on for months.
Meanwhile, another high-stakes case remains unresolved—City still awaits a verdict on their alleged 115 breaches of Premier League financial rules.
As the legal battles continue, one thing is certain: the war between Manchester City and the Premier League is far from over.
This article was published on TDPel Media. Thanks for reading!
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