Manchester City has filed a new lawsuit against the Premier League over the new rules on sponsorship agreements. The Citizens' management disagrees with the current situation and has therefore decided to appeal.
Manchester City has launched a new legal battle against the Premier League, challenging the recently implemented rules that restrict clubs from securing commercial deals with companies linked to their owners.
The club argues that the updated Associated Party Transaction (APT) regulations are unlawful and unfairly target them, creating an unlevel playing field within English football.
The Premier League first introduced APT regulations in 2021 as a response to concerns about financial fairness and competitive balance. These rules were designed to prevent clubs from artificially inflating their revenues through sponsorship deals with businesses owned by or closely associated with their stakeholders. The aim was to ensure that commercial agreements reflected genuine market value rather than serving as a means to boost financial figures and circumvent financial regulations.
In November 2023, a majority of Premier League clubs voted to further tighten these regulations, making it more difficult for teams with wealthy owners to negotiate high-value sponsorship deals with affiliated companies. Manchester City, which is owned by the Abu Dhabi United Group, strongly opposed these changes but was unable to prevent them from being passed. Despite City’s objections, the amendments were approved and implemented.
City believes that these restrictions unfairly target clubs with ownership structures similar to theirs while giving an advantage to historically dominant clubs that generate high revenues through long-established commercial networks. The club argues that the new APT rules are discriminatory, limiting their ability to maximize sponsorship revenue and operate on equal terms with their rivals. As a result, Manchester City has taken legal action to overturn the amendments as quickly as possible, accusing the Premier League of imposing regulations that stifle fair competition.
This legal battle adds another layer of tension to the already complex relationship between Manchester City and the Premier League. The club is already facing 115 charges for alleged breaches of financial rules over a period of nearly a decade, an investigation that remains unresolved. City has repeatedly denied any wrongdoing and maintains that they have operated within financial regulations. However, this new lawsuit highlights their growing frustration with what they perceive as unfair treatment from the league's governing bodies.
Legal experts suggest that this case could have major implications for the Premier League’s ability to regulate financial matters in the future. If Manchester City is successful in challenging the APT rules, it could force the Premier League to reassess its approach to financial regulations, potentially weakening its ability to enforce spending restrictions on clubs with vast financial resources. Conversely, if the league successfully defends the rules, it would reaffirm its authority in ensuring financial fair play and preventing clubs from leveraging ownership-linked deals to gain a financial advantage.
Other clubs are closely monitoring the case, as the outcome could impact the way they conduct their own commercial business. Clubs with significant external investment, including Newcastle United who are owned by Saudi Arabia’s Public Investment Fund are particularly interested in the result, as they too have faced scrutiny over sponsorship deals linked to their ownership groups.
For now, Manchester City remains determined to fight against what they see as restrictive and unjust policies. The club’s legal appeal signals a broader dispute over the governance of financial rules in the Premier League, with City seeking to reshape the regulatory landscape to better align with their business model. The coming months could prove crucial in determining whether these regulations remain in place or whether City’s legal challenge forces another major shift in the financial framework of English football.
