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Legal Dispute Between Manchester City and Premier League Set to Begin on Monday

Arbitration Hearing Begins in Manchester City’s Legal Dispute with Premier League: Potential Ramifications for Competition

The legal battle between Manchester City and the Premier League is set to begin on Monday, with the arbitration hearing expected to have significant implications for the competition.

City, the reigning Premier League champions, are challenging the league’s associated party transaction (APT) rules in a hearing that is scheduled to last until June 21. The club is reportedly planning to challenge the validity of the rules under UK competition law.

The APT rules were introduced in December 2021 following the Saudi-led takeover of Newcastle and were further strengthened in February. These rules are aimed at ensuring that any commercial deals or player transfers between a club and entities linked to the club’s ownership are conducted at fair market value, in order to prevent artificial inflation of club revenues.

If the arbitration panel rules the APT rules invalid, clubs would have more freedom to conduct commercial deals without independent scrutiny of their fairness. This could potentially lead to clubs with wealthy owners, such as City and Newcastle, gaining a significant advantage in terms of spending on transfers and wages.

City’s lawyers have reportedly argued that the club has been discriminated against and subjected to a “tyranny of the majority” as a result of these rules. The Premier League is being supported by between 10 and 12 clubs in defending the case, while one club has submitted a witness statement in support of City.

The outcome of this arbitration process, which is being conducted under Section X of the Premier League’s rules, is not required to be made public. However, given the potential impact on the competition, it is likely that the ruling will not remain secret for long.

The legal dispute comes at a time when City are also facing 115 charges of alleged breaches of the Premier League’s financial rules, with a separate hearing expected to take place in the autumn. City have denied any wrongdoing in relation to these charges.

Both City and the Premier League have remained tight-lipped on the matter, but the outcome of the arbitration hearing is eagerly awaited by football fans and stakeholders alike.

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