Arbitration Hearing in Manchester City’s Legal Dispute with Premier League Set to Begin
The arbitration hearing in Manchester City’s legal dispute with the Premier League is set to begin on Monday, with potentially huge ramifications for the competition. The Premier League champions are challenging the league’s associated party transaction (APT) rules in a hearing that will last until June 21.
City is believed to be challenging the validity of the rules under UK competition law. The APT rules were introduced following the Saudi-led takeover of Newcastle in 2021 and were recently strengthened in February.
If the arbitration panel declares the APT rules invalid, clubs would effectively be free to conduct any commercial deals they wish without independent judgment on fair market value. This could lead to clubs boosting their revenue and having more flexibility in transfer and wages spending, potentially creating a divide between clubs with deep-pocketed owners like City and Newcastle.
City’s lawyers have claimed the club was discriminated against and subjected to a “tyranny of the majority” due to these rules. This challenge could also raise concerns about the Premier League’s governance and decision-making process.
Between 10 and 12 clubs have reportedly supported the Premier League’s defense of the case, while one club has supported City. The outcome of this claim could also impact the separate matter of the 115 charges brought against City for alleged breaches of financial rules.
There is no provision in the Premier League’s rules stating that the outcome of the arbitration must be made public, but given the stakes involved, it is likely to become known once the ruling is issued. Both City and the Premier League have not commented on the matter.