The Times: Manchester City is taking legal action against the English Premier League over commercial rules
By Sammy Mncwabe, CNN
(CNN) — Manchester City has initiated legal action against the English Premier League (EPL) over commercial rules, the UK’s Times reported on Tuesday.
City, which won a fourth successive Premier League title last month, is looking to end the league’s Associated Party Transaction (APT) rules, according to The Times, which reported on specific excerpts of the lawsuit.
Those rules require commercial and sponsorship deals involving companies owned or associated with the same club’s owners to be independently assessed by the EPL board on whether they are of fair market value.
Between 2008 and 2015, City was wholly owned by Abu Dhabi United Group, a company belonging to Sheikh Mansour bin Zayed, according to the website of City Football Group, the club’s parent company, which is majority owned by Newton Investment and Development LLC. Newton is also owned by Sheikh Mansour, who is UAE Vice President, Deputy Prime Minister and President of the Presidential Court. The company is registered in Abu Dhabi.
Effectively owned by a nation state, City has attracted criticism from some who argue that it is an entity that has an unfair advantage over its rivals given the value of sponsorship deals with companies that are owned by the club’s owners.
The APT rules came into effect in December 2021 after the Saudi-led takeover of Newcastle United.
According to The Times, City claims the APT rules are unlawful and are seeking damages from the league.
According to The Times’ reporting, City argues that it’s the victim of “discrimination” and has been subject to the “tyranny of the majority,” a reference to the way the Premier League reaches decisions – a minimum of 14 of its 20 clubs are required to approve any regulatory changes.
The matter will be heard in a two-week private arbitration hearing, scheduled to begin on June 10, The Times reports.
CNN has reached out to the EPL which declined to comment while City has yet to respond to CNN’s request for comments. CNN hasn’t been able to verify the litigation document, which the Times reported consists of 165 pages.
The ruling in the APT case could have a significant impact on another legal matter involving City – an independent hearing into alleged financial breaches. A conclusion to that case reportedly remains some time away.
In February 2023, the Premier League accused City of breaching more than 100 financial rules, and allegations included failing to provide accurate financial information, failing to comply with UEFA’s financial fair play (FFP) regulations and failing to follow Premier League rules on profit and sustainability.
At the time, the club said it had a “comprehensive body of irrefutable evidence” to support its position, and City manager Pep Guardiola said he hoped for a swift ruling so that “if we did something wrong, everyone will know it.”
Despite City’s legal woes, the club made history in May, becoming the first English team to win four consecutive league titles. In 2023, City won the Champions League for the first time.
But with every trophy comes constant referencing of City’s alleged financial breaches, much to the chagrin of chairman Khaldoon Al Mubarak.
“Of course, it’s frustrating. I think the (referencing) is always frustrating,” Al Mubarak said in his end of season interview released on City TV on Wednesday.
“I can feel, of course, for our fanbase, for everyone associated with the club, to have these charges constantly referenced.
“I think we as a club have to respect that there is a process that we have to go through, and we’re going through it.
“It’s taking longer than what anyone hoped for, but it is what it is, and I’ve always repeated … let’s be judged by the facts, and not by claims and counterclaims,” he added.
The-CNN-Wire
™ & © 2024 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.
