Wednesday, June 5, 2024 - Premier League champions, Manchester City are taking legal action against the Premier League over its financial rules to defend their 115 alleged breaches of top-flight regulations.
A case was brought by City against the league and, according
to the Times, an independent tribunal has been convened for next week to
hear it.
The tribunal is set to last two weeks and comes as both
sides are preparing for November’s long-awaited hearing on City’s 115 charges
of alleged rule-breaking related to financial fair play.
City’s legal challenge centres on associated party
transaction (APT) rules.
APTs, in which clubs strike sponsorship or revenue deals
with businesses linked to their owners, have been the subject of scrutiny from
the league for some time.
In February clubs voted to approve tougher rules
regarding how such deals are valued. A requirement to assess fair market value
for APTs has been challenged by City, who have argued it contravenes
competition law.
The club are understood to be asking for financial damages
from the league for perceived losses from sponsorship deals that were halted by
the rules. They argue that the league has not been able to prove that clubs get
an unfair advantage from APTs and that it has previously failed to act with the
same urgency to control big spending by dominant sides.
In another claim forming part of the suit, City are taking
aim at the league’s voting rules. The requirement that 14 of 20 clubs must vote
in favour of any proposal in order for it to be adopted has long been hailed as
one of the competition’s strengths, meaning that clubs must align behind any
change before it is implemented. According to the Times, however, City’s suit
claims the voting system preserves “the tyranny of the majority”.
According to its report between 10 and 12 top-flight clubs
have responded to a league request for submissions in support of its rules. One
club is meanwhile reported to have provided testimony in support of City’s
claim.
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