Manchester City are taking legal action against the Premier League, according to a report.
The Times claims City are trying to end rules regarding commercial and sponsorship deals with companies owned or associated with the same club’s owners.
As it stands, any transactions between the club’s same owners must be independently assessed to be of fair market value, but the 2023 Treble winners believe this is “unlawful”.
The report reveals the champions are seeking damages for revenue lost by those restricting regulations.
City believe they have been victims of discrimination and this case comes at a time when a hearing is set to take place regarding the 115 charges against them for breaching financial rules.
The rule was originally introduced in 2021 when the Saudi Arabian Public Investment Fund bought Newcastle and this challenge will be heard on June 10.
Kaveh Solhekol explains The Times’ exclusive story that Manchester City are taking legal action against the Premier League 💼 pic.twitter.com/93hJGGHrjy
— Sky Sports News (@SkySportsNews) June 4, 2024
It is expected to last two weeks and will commence through the legal process of arbitration.
The Premier League’s rules require any club to run dealings with ‘associated parties’ past them for approval.
Associated parties can be classed as companies or people who have any interest in the club, including financially.
Once the dealing has been passed on, the Premier League will then review each transaction and assess whether they are of a fair market value.
It is intended to increase fairness across the division by restricting reliance on commercial revenues linked to the club’s ownership.
City are under investigation for not disclosing the numbers behind one of their manager’s salary over a four-year period.
🔺EXCLUSIVE
Manchester City have launched an unprecedented legal action against the Premier League in a move that has sparked civil war in English football’s top flight.
The outcome could dramatically alter the landscape of the professional game, @Lawton_Times reports
— Times Sport (@TimesSport) June 4, 2024
There is a belief from the prosecution that the manager in question was getting paid much more than City had documented.
The 115 charges were accumulated between 2009-2018 and it is reported that they have breached the rules over 100 times.
They are now hitting back in an effort to prove their innocence in the matter.
