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Man City launch Legal Action Against Premier League

Man City launch Legal Action Against Premier League

Manchester City, recently crowned English champions, have launched a legal action against the Premier League.

According to the Daily Mail, quoting The Times, City will look to end the league’s Associated Party Transaction (APT) rules, which according to them are unlawful.

It was reported in February, 2024, that City sent threat of legal action against the Premier League’s APT rules and it has been confirmed the club went ahead with it and a date for the hearing has now been fixed for June 10th.

The rules, which were introduced in December 2021 are designed to maintain competitiveness by preventing top-flight clubs from inflating commercial deals with companies linked to their owners.

However, in a 165-page legal document, City claim that the rules have been approved by rivals to stifle their success on the pitch as a ‘tyranny of the majority’.

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The club accused league rivals of discrimination against Gulf ownership after the rules were implemented shortly after Newcastle United’s Saudi takeover.

If the Manchester club is successful in their hearing, it could allow the league’s richest clubs to value sponsorship deals without independent assessment

Meanwhile, City are still awaiting an outcome for the 115 charges, which include a failure to provide accurate financial information between the 2009-10 and 2017-18 seasons.

Also, a failure to provide accurate details of player and manager payments during the same period, and alleged breaches of Premier League as well as UEFA financial rules.

The breach which City face the most charges from claims that from every season from 2009-10 to 2017-18, the club failed to follow the rules that states that member clubs must provide accurate financial information to the league

This allows the FFP a ‘true and fair’ view of a club’s revenue which includes sponsorship deals and their operating cost, which involve player salaries.

Another charge which City face accuses the club of not being truthful in the reporting of the compensating they handed out to leaving managers over the course of multiple seasons.

Also, they face accusations of reducing the cost of player and coach salaries by introducing a third party who paid a portion of the wages.

For the second season running, City beat Arsenal to the league title, finishing two points ahead of the North London club.

It was an historic league win as they are now the first-ever club to lift four consecutive English Premier League titles.

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