• Loading stock data...
Friday, November 8, 2024
DEADLINE EXTENDED: The Best Employers in Sports survey is now open through Nov. 13 Learn More

Premier League Faces Legal Attack From Most Dominant Club

  • Manchester City will enter an arbitration period with the Premier League over sponsorship rules.
  • The outcome could alter a November hearing that threatens fines and relegation.
Premier League champion banner outside of Manchester City's Etihad Stadium
MCFC

Manchester City is one of the most powerful soccer clubs in the world on and off the pitch, and it’s taking legal action against the Premier League to try to keep it that way.

The Times revealed Tuesday that City will start a two-week arbitration period with the Premier League on June 10 to challenge the associated party transaction rules. They require an independent body to review any sponsorships from companies tied to the club’s owners to ensure deals are made at a fair market rate. APT rules were instituted in 2021 with the Saudi-backed takeover of Newcastle United to ensure the new owners wouldn’t inflate deals that would funnel millions into clubs and give them an unfair advantage.

The legal document argues APT rules have made City a victim of “discrimination” by other clubs seeking to limit its success on the field. The team has won four consecutive Premier League titles. The document also describes the rules, which require two-thirds approval or at least 14 clubs to sign off on a matter, as a “tyranny of the majority.”

Next week’s proceedings could alter a November hearing about financial allegations that threaten large fines and relegation from the top flight. City is up against 115 charges, which it has entirely denied, for breaching financial rules and failing to cooperate in a subsequent investigation. Some of those breaches involve sponsorship deals linked to City’s owners in Abu Dhabi, and should the club successfully argue its case this month, it will be much harder for the league to win its offensive in the fall.

City filed its claim Feb. 16, and the Premier League alerted all clubs of the situation March 1, inviting them to participate. According to The Times, at least one club submitted a witness statement supporting City, but between 10 and 12 clubs provided a witness statement or letter with evidence for the Premier League’s side. Other teams support the league’s argument because they don’t want City to have unchecked power to pay players whatever they want and void financial rules designed to ensure a fair playing field.

The Premier League is spending more than £20 million, or roughly $25.5 million, on legal fees for the case, which were about one-quarter of that size a year ago, The Times reported, and has had to spend more time dealing with this claim instead of preparing for November’s hearing.

The Premier League faced another legal battle in March from Leicester City, who also took action against the English Football League, after the relegated club was also accused of financial breaches. But the midsize Leicester City is a much less intimidating opponent than Manchester City, valued at roughly $5 billion.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Tigers Head Coach Brian Kelly as the LSU Tigers take on the Ole Miss Rebels at Tiger Stadium in Baton Rouge, LA. Saturday, Oct. 12, 2024.

Source of LSU’s New Tiger Has History of Animal Abuse Allegations

LSU isn’t using the tiger that lives on campus for Saturday’s game.

Michael Jordan’s Team Loses Bid for Temporary Injunction Against NASCAR

The teams can still compete, but will miss out on certain guarantees.

NCAA Lifts Long-Standing Ban on Canadian Hockey League Players

A $600 monthly living stipend had kept players out of NCAA hockey.
DraftKings

DraftKings Lowers Full-Year Guidance After Brutal NFL Outcomes

DraftKings cited a tough start to the fourth quarter in lowering its 2024 guidance.
podcast thumbnail mobile
Front Office Sports Today

Joey Logano Talks NASCAR vs. F1, Pursuing Third Championship

0:00

Featured Today

NFL Center Connor McGovern Is the Heir to a Potato Empire

The NFL vet’s family provides potatoes for McDonald’s, Wendy’s, and others.
Vanderbilt Commodores fans head to the south end zone as the goal post is taken down by exuberant fans after beating No. 1 Alabama 40-35 at Vanderbilt Stadium in Nashville, Tenn., Saturday, Oct. 5, 2024.
opinion
November 2, 2024

Something New in College Football This Year: Parity

Upsets, surprises. CFB is more fun on the field than the NFL.
Sep 28, 2024; Tuscaloosa, Alabama, USA; GOP Presidential candidate Donald Trump waves flanked by former Georgia Bulldogs player Herschel Walker, recording art Kid Rock, professional golfer John Daily, Alabama senators Tommy Tuberville (R) and Katie Britt (R) during the second half of the game between the Alabama Crimson Tide and the Georgia Bulldogs at Bryant-Denny Stadium.
November 1, 2024

Mission Swing State: College Football’s Political Advertising Battle

Trump, Harris, and the PACs that support them are utilizing the sport.
October 31, 2024

The Untapped Revenue ‘Powder Keg’ of Women’s NFL Fandom

There’s a “boatload” of money at stake for brands and the league.

Cardinals Return to DSG at Reduced Fee, but Company’s Issues Remain

The team’s revised rights deal includes a lowered fee and newly added streaming rights.
November 5, 2024

Twins At Crossroads: Team Sale, Media Shifts, and Rising Competition

Team officials look to maintain “business as usual” amid growing uncertainty.
November 6, 2024

Chiefs Eye Perfect Season, Three-Peat, and Capitalizing Off the Field

Despite injuries and an abnormally low average margin of victory, the wins keep coming for Kansas City.
Sponsored

How UBS Crafts Impactful Partnerships Across Sports, Arts, and Culture

As UBS continues to expand its impressive array of sports and entertainment partnerships, the company solidifies its position as a leader in wealth management.
November 5, 2024

Sorry, Sacramento: Your MLB Team Will Only Be Known As the Athletics 

The club’s new “brand transition guidelines” remove any reference to a place.
November 3, 2024

Embiid’s Clash With Reporter Sparks NBA Probe, Concerns for Sixers

The former NBA Most Valuable Player angrily confronts and shoves a local columnist.
October 26, 2024

Las Vegas Aces Cut GM Amid Front-Office Restructuring

The 2022 and 2023 champions lost to the Liberty in the WNBA semifinals.
October 25, 2024

Inside The Wall at L.A. Clippers’ New $2B Home

FOS went inside the “contagious” energy at the L.A. Clippers’ Intuit Dome.