April 7 – Manchester City has initiated another legal challenge against the Premier League over rules regarding “associated party transactions” (APT).
The club is contesting amendments to the APT rules that were voted on by Premier League clubs last November. These changes were implemented following an earlier legal challenge by the defending champions.
APT rules aim to ensure that commercial deals with organisations closely linked to club owners are conducted at fair market value. The rules are designed to prevent the artificial inflation of deals, such as sponsorships, which could compromise the league’s financial regulations.
The Premier League introduced these rules in December 2021 after Newcastle United was acquired by Saudi Arabia’s Public Investment Fund. They also targeted the revenue that could be raised by Abu Dhabi-backed City from state entities through sponsorship.
In February, an arbitration panel found fault with the Premier League’s ability as a regulator to create rules after an initial verdict in October. The league responded by modifying three areas of the rules and the revisions were passed by a majority of clubs in November. However, City are yet again challenging the rules that should prevent major clubs from inflating the value of deals to spend more on players and comply with Profit and Sustainability rules (PSR).
Under current PSR rules, clubs can only lose £105 million over three years.
This new legal filing brings the total number of ongoing legal cases between Manchester City and the Premier League to three. The Premier League champions are facing more than 100 charges of alleged financial breaches from the league.
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