The ongoing legal dispute involving Manchester City and the Premier League has been brought to light by The Times. The crux of the issue lies in the Premier League’s Associated Party Transaction (ATP) rules, which govern commercial and sponsorship deals between clubs and companies connected to their owners. These rules, which were implemented in 2021, require such transactions to undergo independent assessments to ensure they meet the criteria of ‘fair market value’.
It has been revealed that Manchester City is contesting the legitimacy of these regulations, denouncing them as “unlawful” and aiming to seek compensation for the revenue they claim to have lost due to the restrictions imposed by these rules. City’s argument is reportedly outlined in a comprehensive 165-page legal document, in which they assert that they are the victims of “discrimination”.
The genesis of this legal contestation can be traced back to December 2021, a pivotal moment when the Saudi Arabian Public Investment Fund acquired Newcastle United, prompting the introduction of the disputed rule. This development marked a significant turning point and is likely to be a focal point in the upcoming arbitration hearing, scheduled to commence on Monday, June 10.
Additionally, it’s worth noting that Manchester City is facing separate charges related to financial fair play violations. They are accused of breaching these regulations around 100 times over a nine-year period, from 2009 to 2018, including allegations of non-disclosure of financial arrangements with a manager and non-compliance with UEFA’s financial fair play rules. Furthermore, there are claims that the club did not fully cooperate with the Premier League’s investigation.
In light of these multifaceted legal entanglements, it is evident that the relationship between Manchester City and the football authorities is embroiled in complex and contentious legal battles, with significant implications for the club and the broader footballing landscape.
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