Manchester City have taken legal action against the Premier League in an unprecedented move that has never been seen before in English football.
It comes against the backdrop of the 115 alleged charges of breaching Premier League financial rules that have already been levelled at the champions, an ongoing case that has continued to rumble along in the background of City’s continued domestic dominance.
While no specific date has been scheduled for this highly-anticipated trial to take place, the hearing is set to begin in November and run for around six weeks.
The club has continued to vehemently deny the charges, and has now shocked the football community by taking their own legal action against the Premier League. But why have they gone down the legal route? What are their chances of being successful? And do they have any support from other clubs?
Mail Sport answers all the key questions, with the private arbitration hearing between City and the Premier League set to begin today.
Man City have taken legal action against the Premier League with the private hearing set to start today
The Premier League have already charged Man City with 115 alleged breaches of financial rules (pictured: Premier League CEO Richard Masters)
Why has legal action been taken?
City have opted to take legal action as they believe the current Premier League rules are restricting them and putting them at a disadvantage compared to their rivals.
In their claim they labelled the current restrictions imposed as ‘tyranny of the majority’.
When City’s takeover took place in 2008, Manchester United had already won 10 Premier League titles, and City were also playing catch-up with the likes of Arsenal, Chelsea and Liverpool.
In order to close the gap, City have been dependent on commercial revenue, with one example being their sponsorship deal with Etihad Airways, who have links with the club’s Abu Dhabi owners.
Under their Associated Party Transaction (ATP) rules, the Premier League relies on an independent company to determine a fair price when it comes to commercial revenue, such as sponsorship deals.
City want to get rules that limit how much companies linked to club owners can spend on sponsorship deals thrown out, which has led to them taking action against the Premier League.
City and their owner Sheikh Mansour (dressed in brown) are unhappy with the current ATP rules
What are the current Associated Party Transaction rules?
These are the rules at the centre of this case.
They state that clubs, as well as their players, manager and senior officials must keep them informed when conducting dealings with associated parties.
Associated parties are seen as companies of people who have a vested interest in the club in any way, including from a financial perspective.
With each transaction, the Premier League will carry out a review to ensure that a fair market value has been recorded by the relevant club.
When were Associated Party Transaction rules first introduced?
The ATP rules first came into play shortly after Saudi Arabia’s Public Investment Fund (PIF) bought Newcastle in October 2021.
That takeover was heavily scrutinised and took over a year to go through after interest was first registered in buying the club from Mike Ashley.
There were concerns that Newcastle may try to take advantage of commercial deals in the Middle East by signing contracts at the upper end of the market value scale in order to go from a club battling relegation to one that could challenge at the top of the table.
The Premier League brought in the rules in a bid to ensure that the way commercial revenue deals are calculated is fair for all teams in the top flight.
The rules were last updated in February.
The ATP rules were first introduced shortly after Saudi Arabia’s Public Investment Fund (PIF) completed their takeover of Newcastle
Do any other clubs support City’s case?
Support wouldn’t be the right word, but Mail Sport exclusively revealed last week that at least three clubs – including Newcastle – sympathise with City’s case.
Chelsea and Aston Villa are also understood to feel City have valid concerns, as Premier League teams look to ensure they are staying on the right side of the Premier League’s Profit and Sustainability rules (PSR).
Villa co-owner, the Egyptian billionaire Nassef Sawiris, is close to City chairman Khaldoon Al Mubarak and he shares frustrations over imposed limits on spending.
Chelsea have some sympathy for City’s legal case against the Premier League
Aston Villa co-owner, Nassef Sawiris (pictured) is close friends with City’s chairman, and shares frustrations over limits on spending
What happens if City win?
Other top flight clubs fear a City win could end the competitive balance in the Premier League.
Mail Sport exclusively revealed that club chiefs are ‘losing their s***’ over the legal battle, and it is understood that between 10 and 12 clubs have provided information in support of the Premier League.
If City succeed in their dispute, it could have a major impact on transfers, potentially lead to PSR being scrapped and open up the possibility of matches being played abroad.
It could also strengthen their position when it comes to defending themselves against the 115 alleged charges levelled against them later this year.
One club executive made their feelings very clear Mail Sport when asked what a victory for City would mean for the rest of the league, simply replying that it would leave them wondering ‘what’s the point?’
| Type of breach | Number of charges relating to breach | Date of trial | Date of decision |
|---|---|---|---|
| Failure to provide accurate and up-to-date financial information from 2009-10 to 2017-18 | 54 | ||
| Failure to provide accurate financial reports for player and manager compensation from 2009-10 to 2017-18 | 14 | ||
| Failure to comply with UEFA’s regulations, including UEFA’s Club and Licensing and Financial Fair Play Regulations | 5 | Autumn 2024 | Summer 2025 |
| Breaches of Premier League profitability and sustainability regulations from 2015-16 to and including 2017-18 season | 7 | ||
| Failure to cooperate with Premier League investigations from December 2018-present | 35 |
Pep Guardiola’s City have won four league titles on the trot, and some clubs fear the competitive balance in the Premier League will end if City win their case
What happens if City lose?
City’s relationship with the Premier League would reach an all-time low if they are unsuccessful with their legal action.
It could lead to them seriously considering their options, with one being looking to rejoin the breakaway European Super League (ESL).
City were among the clubs that wanted to be involved in the ESL back in 2021, but it quickly collapsed following fan backlash.
That hasn’t stopped A22 Sport Management company pushing for the ESL to finally become a reality but in a different format, and that could appeal to City if they lose out to the Premier League.
Fans protested against the European Super League in 2021, but City could look to rejoin it if they lose their case
When should we get a final verdict?
The private arbitration hearing starts today and is due to come to a relatively swift conclusion.
It is expected to finish on June 21 ahead of delivering a final verdict on the case.
