Legal Trouble For Premier League as Manchester City Thought to Be Seeking Arbitration Over Reforms

Manchester City found themselves at a tight end with the Premier League authorities. While one would have expected the Blues to maintain a calm demeanor following the FFP charges, the team could take the fight to the league following the recently suggested reforms. And now the league has currently found itself embroiled in a dispute with teams, as the authorities plan to level the financial playing field amongst the clubs at the top.

According to reports from Sky Sports, the league wants to change the associated-party transaction (APT) rules. The APT prevents teams from signing commercial deals at inflated prices. Manchester City has been ardent in its protest against the arbitration, with the club claiming the rules are against the existing guidelines. According to reports from Sky Sports, Manchester City has vehemently opposed the new guidelines, with the rules preventing teams from using the full potential of their brand value. Abu Dhabi sovereign investors have opposed any changes to the existing APT regulations as they back Manchester City.

City is not the only club that has spoken out against the deal. Notably, Newcastle United and Chelsea have also allegedly rejected changes to the current guidelines. It is critical to note that all three sides have come under financial scrutiny as of late. The teams have been accused of inflating their sponsorship deals to display an improved balance book.

Clubs not happy with Premier League’s recent suggestions

The past few months have seen tension rise between Premier League clubs and the Premier League authorities. Multiple clubs are allegedly unhappy with the recently suggested reforms to the tournament’s structure. Adding insult, top-tier clubs are displeased at the league’s attempt to finalize an elusive financial redistribution within the English soccer pyramid.

According to Sky Sports sources, the league wants to test a series of new financial sustainability reforms. “The whole point of the APT rules is to prevent clubs inflating revenues above fair market value by orchestrating transactions with parties with common ownership. Any attempt to block those is self-absorbed and will ultimately damage the game.”

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Premier League officials believe the new rules can help foster equality and fairness amongst the teams across the leagues. However, top clubs believe putting everyone under the same umbrella hurts teams from using their full potential. What are your thoughts on the ongoing saga? Let us know in the comments below.

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