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Manchester City has initiated fresh legal proceedings against the Premier League, contesting newly amended rules governing sponsorship deals, which the club argues are "unlawful." This marks the latest chapter in an ongoing dispute over the Associated Party Transaction (APT) regulations, designed to prevent clubs from securing inflated commercial deals with businesses linked to their owners.
The controversy surrounding the APT rules has persisted since last year when an independent arbitration panel ruled against certain aspects of the regulations following a legal challenge from City. Despite this, in November 2024, Premier League clubs voted to amend the APT rules—despite opposition from City, Aston Villa, Newcastle United, and Nottingham Forest.
In a letter to clubs, Premier League chief executive Richard Masters confirmed City's renewed challenge. "On January 20, 2025, Manchester City FC began a further arbitration to challenge the APT rules," Masters wrote. "The new challenge relates to the amendments to the APT rules that clubs approved at the November 22, 2024 shareholders' meeting. Manchester City FC seeks a declaration that these amendments, and thus the current APT rules in force, are unlawful and void."
The Premier League maintains confidence in the legality of the revised rules. "The amendments passed in November were lawful, and the APT rules comply with all competition law requirements," Masters stated, emphasizing that "the APT rules remain in full force and effect, and clubs must adhere to all aspects of the system."
This latest legal action comes amid a broader legal battle between City and the Premier League. In addition to the APT disputes, City is awaiting the outcome of an independent disciplinary hearing regarding over 100 alleged breaches of financial rules, which the club firmly denies.
The debate over APT regulations centers on the Premier League’s efforts to maintain competitive balance by ensuring commercial deals reflect fair market value. Critics argue that restrictions unfairly limit financial autonomy, with City viewing the rules as "anti-competitive."
The legal proceedings have already resulted in significant financial costs for both sides. Meanwhile, top-flight clubs are set to convene in London next week for their first shareholder meeting of 2025, where the issue is likely to be a focal point of discussion.
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