In a dramatic twist in the ongoing legal battles between Manchester City and the Premier League, the club is now reportedly preparing to send the league a bill for over £20 million in legal fees.
This follows City’s recent victory in February, when they successfully challenged the Premier League’s sponsorship rules in court.
The Premier League’s new sponsorship rules, which were introduced between 2021 and 2024, were put in place after Newcastle’s Saudi takeover.
These rules aimed to ensure that sponsorship deals tied to a club’s ownership were valued fairly in the market.
However, a tribunal recently ruled that these rules were “void and unenforceable,” a major blow to the Premier League’s regulations.
Manchester City’s Legal Costs and the Premier League’s Setback
When the decision was made in February, it was reported that Manchester City spent around £10 million on their legal fees, with plans to seek reimbursement from the Premier League.
The Premier League, on the other hand, would have to cover its own £10 million in legal costs, which they might have sought from City had they won the case.
The latest reports from The Times confirm that Manchester City will indeed request the Premier League to cover their legal expenses.
This move follows City’s continued challenge to the amended sponsorship rules introduced by the Premier League, which were voted on by club members in November.
Despite City’s objections, 16 clubs voted in favor of the amendments, while only four were against them.
City’s Latest Dispute Over Amended Sponsorship Rules
Manchester City is now taking aim at the revised rules, arguing that they still “discriminate” against them. City’s legal team has pointed out that clubs like Arsenal continue to benefit from advantages that they deem unfair.
This new phase of the dispute involves the same panel of judges that sided with Manchester City in the earlier case, and they will be tasked with deciding on this latest issue.
If Manchester City is successful again, it could have significant ramifications for the Premier League’s financial regulations, potentially causing chaos and leaving clubs with yet another hefty legal bill.
The Broader Context and City’s Denial of Charges
This latest battle is unrelated to the 130 charges the Premier League has brought against Manchester City for alleged breaches of financial rules.
However, the club is using the same legal team to fight both cases.
Manchester City has consistently denied all charges related to financial misconduct.
As this ongoing legal saga continues, the future of the Premier League’s sponsorship rules hangs in the balance, with Manchester City determined to challenge any measures they perceive as unfair.