Manchester City have launched a new legal challenge against the Premier League’s recently amended Associated Party Transaction (APT) rules, according to The Times.
The dispute has been simmering for months and took a new turn after City’s legal team notified the league that they are seeking arbitration over the controversial regulations.
Premier League chief executive Richard Masters confirmed the move in a letter to clubs ahead of a shareholders’ meeting next week.
City are frustrated after the November vote, where 16 out of 20 top-flight clubs backed the tightened APT rules.
The APT rules were designed to curb the financial influence of club-associated sponsors. They limit owners from funnelling money into their clubs through commercial deals.
City have several eyebrow-raising sponsorship deals with Abu Dhabi-linked companies, and these firms channel large amounts of money into their coffers.
Newcastle United also employ the same tactics. Their £25m-a-year front-of-shirt sponsorship deal with Saudi Arabian events company Sela has been scrutinised.
Chelsea’s ties with Infinite Athlete are also worth monitoring.
However, City see the rules as a power play to stifle their financial manoeuvrability, branding it a tyranny of the majority.
The arbitration process is expected to be overseen by Lord Pannick, the barrister already representing City in their defence against 115 alleged breaches of Premier League financial regulations.
The club had warned they would take further legal action if the Premier League proceeded with rule amendments before an independent tribunal had thoroughly reviewed the issue.
With the tribunal findings due later this month, City have jumped into action. They are mainly attacking the treatment of shareholder loans within the revised APT framework.
The club has accused the Premier League of misrepresenting prior tribunal rulings and misleading clubs into approving amendments they believe are legally flawed.
The tension between City and the Premier League is already at boiling point. This latest challenge will further strain relations.
