Manchester City has taken legal action against the English Premier League by filing a lawsuit. The aim is to challenge the Premier League’s Associated Party Transaction (ATP) regulations, according to The Times.
These regulations are designed to oversee commercial and sponsorship deals with companies linked to the owners of a club. They require independent assessment to ensure compliance with fair market value criteria.
In a lengthy 165-page document, City argues that these regulations are “unlawful” and that they are being unfairly treated, feeling like “victims of discrimination.”
The ATP rule came into effect in December 2021 following Newcastle’s acquisition by the Saudi Arabian Public Investment Fund.
Kaveh Solhekol, Sky Sports News chief reporter, commented on the potential impact of this legal action on the competitive balance of the Premier League.
“This situation is unprecedented. Manchester City, the reigning champions of the Premier League, are suing the Premier League itself,” Solhekol said.
City’s argument, to be presented during a two-week arbitration hearing starting June 10, revolves around the claim that certain financial rules imposed by the league are incompatible with UK competition law.
The focus is particularly on the Associated Party Transaction rules, which require thorough assessment to ensure fairness in commercial deals between clubs and entities related to their owners.
If successful, this legal challenge could have significant implications for how Premier League clubs conduct their financial transactions and, consequently, the future competitive landscape of the league.
