Manchester City launch legal action against Premier League, accusing them of “discrimination”
Champions Manchester City have launched legal action against the Premier League, challenging its rules on related-party transactions and seeking damages.
In an escalation of their legal battle, the Abu Dhabi-owned club will face off in a dispute against the Premier League in a two-week private arbitration hearing due to start next week.
City, who have won the last four Premier League titles, are set to argue that they are victims of “discrimination”, that the rules were voted through to cap their success, describing it as a “tyranny of the majority”, according to the Times.
It is separate to the club’s ongoing dispute with the league over 115 charges of alleged financial and regulatory breaches.
The contention surrounds associated party transaction rules, which were tightened in February this year and seen by some as targeting clubs with state ownership and sponsorship deals with companies that have links to their owners.
Manchester City are owned by Abu Dhabi royal Sheikh Mansour and have important commercial relationships with other Emirati groups such as Etihad Airways, the club’s main sponsor.
Questions were also raised surrounding Newcastle United, owned by Saudi Arabia’s Public Investment Fund, who have sponsorship deals with Jeddah-based Sela, Noon and Saudia.
A Premier League statement in February on the toughened rules read: “Following a full review of the existing Associated Party Transactions Rules and Fair Market Value assessment protocols, clubs agreed to a series of amendments to further enhance the efficiency and accuracy of the system.”
Manchester City were approached for comment. The Premier League declined to comment.