As Manchester City battles the Premier League over its financial rules, they are now demanding key financial data from rival clubs like Arsenal, Brighton, and Everton.
The request comes as part of City’s ongoing fight with the league over new regulations on sponsorship deals.
A Legal Move to Challenge the Premier League
City’s legal team has pushed for the Premier League to enforce its own rules, requiring these clubs to disclose details about loans they’ve received from their owners.
City argues that shareholder loans, which often come with favorable terms like low or no interest, give certain clubs an unfair advantage since these transactions are not as closely scrutinized as other commercial deals.
This is a major point of contention, especially since City has previously succeeded in challenging earlier versions of these regulations, leading them to claim that the new rules still unfairly target them.
Arsenal’s Potential Exposure
Among the clubs under scrutiny, Arsenal stands out, having received £259 million in shareholder loans during the 2022-23 season.
Liverpool and Brighton also feature prominently, with Liverpool owing £71.4 million to its owners in 2023, and Brighton receiving approximately £406.5 million in loans for the 2021-22 season.
Everton, too, is in the spotlight with £450 million in loans from their owners in 2022-23.
These loans are at the heart of the dispute, as City claims they are not subject to the same regulations as other financial dealings, offering a financial edge to these clubs.
The Premier League’s Response
The Premier League has informed all clubs of City’s request, and now these clubs must wait to see if they will be compelled to hand over the requested information.
This move may have caused some concern at Arsenal, especially with their Champions League semi-final against Paris Saint-Germain fast approaching.
The timing of this legal challenge couldn’t be more critical.
The Bigger Picture
This case is part of a broader legal battle that includes City’s previous success in overturning certain financial rules.
The Premier League is facing significant pressure, as City has already warned them about changing the regulations governing Associated Party Transactions (APTs).
These changes could result in another costly legal bill for the league, following a previous fine of over £20 million for the clubs involved in the first challenge.
What’s Next?
An independent panel is set to review City’s request in mid-October, with the potential for a ruling that could shake up the Premier League’s financial regulations once again.
In addition to this ongoing battle, Manchester City is still facing 115 charges of alleged breaches of the Premier League’s financial rules, with a verdict expected by next spring.
If City prevails again, the Premier League’s financial framework could face further challenges, leaving the league and its clubs bracing for another potentially costly legal outcome.