Manchester City set for new Premier League legal battle over ‘unlawful’ rule change

Manchester City have reportedly informed the Premier League that new rules relating to associated party transactions could be unlawful, paving the way for a fresh legal battle.

Premier League clubs voted to toughen rules relating to associated party transactions on Friday by 12 votes to six, with two sides abstaining and Manchester City reportedly warning of legal action.

The current champions are already embattled in a major legal dispute with the Premier League regarding the 115 charges of alleged Financial Fair Play breaches over an extended period, with a hearing date rumoured to have been set for later this year.

Manchester City have now reportedly threatened fresh arbitration proceedings against the Premier League, with Sky News and The Athletic both reporting that the club have informed the league that the changes are ‘unlawful’ in English competition law.

The Premier League have declined to comment on the identity of the club, and insist that the new rules are fully compatible with the law.

A Premier League statement on Friday, read: “Following a full review of the existing Associated Party Transactions Rules and Fair Market Value assessment protocols, clubs agreed to a series of amendments to further enhance the efficiency and accuracy of the system.

“Clubs also agreed to a Premier League Environmental Sustainability Commitment, which introduces a minimum standard of action on environmental issues across the clubs and the League.”

Mark Kleinman reports that the new ATP rules are “intended to ensure a level playing field among English football’s elite teams by preventing clubs from signing commercial deals at inflated prices, thereby enabling them to spend even greater sums on players.”

Manchester City’s sponsorship agreements with Abu Dhabi-based businesses have been subject to scrutiny in the past and the club have also previously expressed opposition to Friday’s rule amendment.