Manchester City start new legal action against Premier League over rules
Manchester City start new legal action against Premier League over rules
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Manchester City have initiated new legal action against the Premier League, as the champions challenge rules on associated party transactions (APT) for a second time. The news comes as the two parties remain in dispute over an initial challenge to rules that control how much money can be generated through sponsorship from companies with connections to a club’s ownership. City are also awaiting a verdict, expected in the spring, in relation to 130 charges brought against them for alleged breaches of Premier League rules. They have denied wrongdoing.
City have written to the league asking for arbitration over a new system of APT rules agreed by clubs before Christmas. The changes had been made in response to previous arbitration brought by City, which found aspects of the APT rules to be unlawful. In a letter sent to clubs on Thursday the league’s chief executive, Richard Masters, confirmed the arbitration request. “On January 20, 2025, Manchester City FC began a further arbitration to challenge the APT rules,” he wrote. “As you will see, the new challenge relates to the amendments to the APT rules that clubs approved at the 22 November 2024 shareholders’ meeting. Manchester City FC seeks a declaration that the amendments approved by clubs in November (and therefore the current APT rules in force) are unlawful and void.
“The Premier League remains strongly of the view that the amendments passed in November were lawful and the APT rules comply with all competition law requirements. We consider that the new arbitration must be resolved as soon as possible and, to that end, have agreed that the same tribunal should be appointed to hear the new case. The parties are currently corresponding in relation to further directions.
“The APT rules remain in full force and effect and clubs remain required to comply with all aspects of the system.”. City, Aston Villa, Newcastle and Nottingham Forest voted against the new rules in November and Chelsea abstained. City had written to clubs before the vote arguing that the process was too hasty and Villa warned in a letter of more legal action from City. “It is now abundantly clear that any vote (if passed) will result in immediate further litigation by Manchester City FC and an associated defence by the EPL (English Premier League), incurring material further costs and unnecessary distraction and devotion of time to this issue,” the Villa letter said.
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