Manchester City, the Premier League champions, are suing the Premier League over its financial laws to defend their 115 alleged breaches of top-flight standards.
City filed a case against the league, and according to the Times, an independent tribunal will hear it next week.
The tribunal is scheduled to last two weeks and comes as both sides prepare for November’s long-awaited hearing on the City’s 115 claims of alleged rule-breaking pertaining to financial fair play.
The city’s legal challenge focuses on associated party transaction (APT) rules.
APTs, in which clubs establish sponsorship or revenue relationships with firms close to their owners, have long been under review by the league.
In February, clubs decided to establish stricter guidelines governing how such transactions are valued. The obligation to establish fair market value for APTs has been challenged by the City, who claim it violates competition law.
The club is reported to be seeking financial compensation from the league for alleged losses from sponsorship arrangements that were terminated by the rules. They say that the league has been unable to demonstrate that clubs benefit unfairly from APTs, and that it has historically failed to act with the same speed to curb large spending by dominating teams.
Another argument in the action targets the league’s voting rules. The necessity that 14 of 20 clubs vote in favour of any proposal in order for it to be adopted has long been regarded as one of the competition’s strengths, implying that clubs must all agree on any change before it is enacted. According to the Times, the City’s suit says that the voting mechanism perpetuates “the tyranny of the majority”.
According to the article, between 10 and 12 top-flight clubs responded to the league’s request for submissions in support of its guidelines. Meanwhile, one club has reportedly testified in favour of City’s allegation.
A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.
Nnamdi Okoli
