Manchester City is preparing to enter a legal battle with the Premier League next week over the organization’s commercial rules. The arbitration hearing is set to begin next week and may extend up to June 21st. The dispute arises from Manchester City challenging the legality of the Premier League’s Associated Party Transaction (APT) rules. These rules are designed to prevent clubs from inflating sponsorship deals with companies that may have connections to them.
The APT rules aim to prevent such deals from being exaggerated, and Manchester City is questioning their validity through legal action. In March, the Premier League informed other clubs about the potential challenge to these rules. They allowed clubs to submit their opinions on the matter, with a majority supporting the regulations. Manchester City’s stance against these rules and their claim for damages make this a significant case, especially considering the club’s recent fourth consecutive league title win.
While the legal dispute is not directly related to the 115 charges that Manchester City denied, some of the charges involve inflating sponsorship deals. If the arbitration panel questions the validity of the concept of inflating sponsorship deals, it could potentially impact the charges the club is facing in the autumn. This legal battle represents a complex situation that could have far-reaching implications for Manchester City and the Premier League.