Just when the drama between Manchester City and the Premier League seemed to be reaching its climax, it’s unfolding even further. The reigning Premier League champions have been accused of breaching 115 financial fair play rules from 2009 to 2016. The charges include inflating their commercial deals, illegally balancing their accounts, and refusing to cooperate with the investigations. However, the club has ardently denied all allegations and has decided to take the legal route against the Premier League itself.
According to a report published by the Times, Manchester City has a 165-page legal document that argues that they are the victims of ‘discrimination’ by the Premier League. They are challenging the Associated Party Transaction (APT) rules of the league. The APT rules dictate that any commercial deal between the club and an organization linked to the club’s ownership must take place at a fair market value.
If City’s legal claim is held against the league, this could have massive ramifications on the hearing against the club later this year. Notably, if the Sky Blues win the case against the Premier League, we could see some massive changes implemented to the league.
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EXCLUSIVE: Man City launch unprecedented legal action against Premier League. Has sparked civil war among clubs with hearing due to start on June 10. City describing PL financial rules as ‘tyranny of the majority’. Full story here on @TimesSporthttps://t.co/l4VRp7GiV3
— Matt Lawton (@Lawton_Times) June 4, 2024
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The Premier League authorities haven’t been able to prove the charges against Manchester City yet. As City continues to deny all allegations, the rival fans have been calling for the Sky Blues to be punished and thrown out of the top flight. However, with City’s reported lawsuit, another dimension has been added to this whole saga.
What happens if Manchester City wins their case against the Premier League?
The English FA has set up an independent panel to decide Manchester City’s fate later this year. If the Sky Blues are found guilty, the club could face relegation from the Premier League while serving a long-term transfer ban. But, if Manchester City has their way, things could take a massive turn.
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A decision in City’s favor can put the whole Premier League commercial process in chaos. If the arbitration panel declares APT rules invalid, the Premier League clubs will be free to have commercial deals without an independent judgment on their market value. This will mean the owners with the heaviest of purses will balance their accounts conveniently.
While many fans believe this could be a significant move to make things more entertaining, it is important to understand that scrapping the APT rules will destroy any barrier that holds top clubs from growing out of reach for the lower division clubs financially. What are your thoughts on the fiasco? Let us know in the comments below.