Manchester City Escalates Legal Battle Against Premier League's Sponsorship Rules

Manchester City has initiated a new legal challenge against the Premier League, targeting the recent amendments to the Associated Party Transaction (APT) rules. The club argues that these changes, approved by a majority of Premier League clubs in November 2024, are "unlawful and void".

Background

The APT rules were introduced to prevent clubs from benefiting from commercial deals with companies linked to their owners at values exceeding "fair market value". Last year, an independent arbitration panel found certain aspects of these regulations to be unlawful following a lawsuit initiated by Manchester City.

The New Challenge

In a letter to clubs, Premier League chief executive Richard Masters confirmed that Manchester City began arbitration on January 20, 2025, to challenge the amended APT rules. The club seeks a declaration that the November amendments are invalid.

Premier League's Stance

The Premier League maintains that the amendments are lawful and comply with competition law requirements. They have agreed to appoint the same tribunal to hear the new case, aiming for a swift resolution.

Financial and Legal Implications

This legal battle has already cost both sides millions of pounds in legal fees. Manchester City is also awaiting the outcome of a separate disciplinary hearing involving over 100 alleged breaches of financial rules, which the club denies.

Broader Impact

The ongoing dispute highlights the tension between clubs and the league over financial regulations. The outcome could set a significant precedent for how football clubs manage sponsorship deals and financial compliance in the future.

Next Steps

The panel is currently deliberating on the submissions made during a two-day hearing last week. Meanwhile, Premier League clubs are set to gather for their first shareholder meeting of 2025 in London, where this issue is likely to be a key topic of discussion.

Both Manchester City and the Premier League have declined to comment further on the matter.