Club Warns of Legal Risks, Accuses League of “Unlawful” Changes Amid Ongoing Disputes
Manchester City has intensified its legal battle with the Premier League, labeling the competition’s proposed new sponsorship rules as “unlawful” and warning of potential legal action if they are implemented. This development comes as tensions between the reigning champions and the Premier League continue to escalate following financial allegations against the club.
Background of the Dispute
Earlier this year, Manchester City was charged with over 100 breaches of the Premier League’s Financial Fair Play (FFP) rules after a four-year investigation into the club’s financial conduct between 2009 and 2018. If found guilty, City could face severe penalties, including fines, points deductions, transfer bans, or even expulsion from the league.
While this FFP case remains unresolved, Manchester City has separately contested the league’s Associated Party Transaction (APT) rules. The APT hearing concluded recently, determining that some of the existing regulations were unlawful, necessitating changes.
City’s Latest Challenge
According to reports from the Dailymail, Manchester City has sent an 11-page letter to all 19 Premier League clubs and the Football Association, warning that the league’s proposed amendments to sponsorship regulations violate legal standards. The letter emphasizes that introducing these changes without awaiting the tribunal’s final verdict on APT rules could lead to costly legal disputes.
The Premier League has defended its position, accusing City of making “repeated and baseless assertions” in their opposition to the new rules.
Key Concerns Raised by Manchester City
City’s legal counsel, Simon Cliff, outlined three major objections in the letter:
- Unlawful Exemptions: The proposed amendments include a retrospective exemption for shareholder loans from December 2021, a move City argues is unlawful.
- Imbalance Among Clubs: The changes could unfairly benefit certain clubs, potentially creating inequities based on past shareholder loans.
- Rushed Process: City urged the Premier League to wait for the tribunal’s ruling before finalizing any changes, arguing that proceeding prematurely increases the risk of further disputes.
Cliff’s letter emphasized the importance of “robust, effective, and lawful regulation,” urging the league to “get it right this time.”
Premier League’s Position
The Premier League insists its proposed changes are necessary and lawful, aiming to address financial concerns across clubs. However, City’s resistance underscores the challenges of implementing rules in a league with diverse financial structures.
What’s Next?
The tribunal is expected to clarify the legality of the APT rules in the coming months. Meanwhile, Manchester City’s strong opposition signals that their “civil war” with the Premier League is far from over. For now, both parties remain entrenched in a high-stakes legal and regulatory battle that could shape the future of financial oversight in English football.
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