Manchester City has shocked the football world by taking legal action against the Premier League, an unprecedented move in English football. This comes amidst the ongoing case of the club’s alleged 115 breaches of Premier League financial rules, which is set to go to trial in November. City vehemently denies these charges and believes that the current Premier League rules restrict their ability to compete with rival clubs.
The club’s claim refers to the restrictions as a “tyranny of the majority.” City argues that, following their takeover in 2008, they were already at a disadvantage compared to established clubs like Manchester United, Arsenal, Chelsea, and Liverpool. To close the gap, they relied on commercial revenue, such as sponsorship deals with companies linked to their Abu Dhabi owners, such as Etihad Airways.
The Premier League’s Associated Party Transaction (ATP) rules, introduced after the Saudi Arabia-backed takeover of Newcastle, aim to ensure fair market value in commercial revenue deals. City’s legal action seeks to have these rules thrown out, arguing that they limit the spending of companies linked to club owners.
While City’s move has not been supported by other clubs, Mail Sport revealed that some clubs, including Newcastle, Chelsea, and Aston Villa, sympathize with their concerns. A victory for City could have a significant impact on the Premier League, potentially affecting transfers, profitability, and the possibility of playing matches abroad. However, other clubs fear that it could disrupt the competitive balance of the league. If City loses, their relationship with the Premier League could reach a new low, potentially leading them to reconsider their involvement in the league.
The private arbitration hearing is set to start today and is expected to conclude by June 21, with a final verdict to follow.
The Premier League have already charged Man City with 115 alleged breaches of financial rules (pictured: Premier League CEO Richard Masters)
City and their owner Sheikh Mansour (dressed in brown) are unhappy with the current ATP rules
The ATP rules were first introduced shortly after Saudi Arabia’s Public Investment Fund (PIF) completed their takeover of Newcastle
Chelsea have some sympathy for City’s legal case against the Premier League
Aston Villa co-owner, Nassef Sawiris (pictured) is close friends with City’s chairman, and shares frustrations over limits on spending
Pep Guardiola’s City have won four league titles in a row, and some clubs fear the competitive balance in the Premier League will end if City win their case
Fans protested against the European Super League in 2021, but City could look to rejoin it if they lose their case