Manchester City launches legal action against Premier League over 'sponsorship rules'

Manchester City has filed an unprecedented legal action against the Premier League, alleging discrimination against Gulf ownership and challenging the Associated Party Transactions rules governing sponsorship deals. The club claims the rules violate competition law and have caused financial losses, setting the stage for a high-stakes legal dispute in football governance.

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Manchester City has initiated an unprecedented legal action against the Premier League, claiming they face "discrimination against Gulf ownership" from rival clubs.

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The legal challenge focuses on the associated party transaction (APT) rules, which ensure sponsorship or revenue deals between a club and entities linked to their owners are conducted at fair market value.

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Details were acquired of City's case, revealing that the club argues the stricter APT rules, approved in February, contravene competition law. City contends these rules have unfairly halted their sponsorship deals, resulting in financial losses for which they are seeking damages from the Premier League.

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Manchester City's legal team asserts that the rules subject them to a "tyranny of the majority," discriminating against their Gulf ownership by Sheikh Mansour, Abu Dhabi's deputy prime minister.

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A private two-week arbitration hearing, initiated by City, is set to begin on Monday. This dispute could potentially weaken the Premier League’s 115 charges against City, some of which involve alleged attempts to disguise owner funding as sponsorship in violation of league rules. City denies any wrongdoing.

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If City's claim that the rules are unlawful succeeds, it could significantly undermine the case against them. So far, 12 of the other 19 Premier League clubs have stepped forward to support the league’s defense. Both the Premier League and Manchester City have declined to comment on the ongoing legal matter when contacted by Standard Sport.