Manchester City has initiated an unprecedented legal battle against the Premier League, asserting that the league’s oversight of sponsorship agreements constitutes unlawful discrimination and has resulted in financial losses for the club. A 165-page legal document obtained by Matt Lawton of The Times reveals the details of City’s complaint.
Scheduled for a two-week private arbitration hearing from June 10th to 21st, this dispute is distinct from Manchester City’s contestation of 115 alleged breaches of Premier League regulations and financial rules, slated for November.
City’s argument centers on the Premier League’s requirement for 14 out of 20 clubs to vote in favor of rule changes, which they claim enables discriminatory practices by rival clubs aimed at impeding their commercial activities, particularly those involving the Gulf region. The club alleges that such actions are intended to hinder their on-field success.
The crux of the complaint stems from the introduction of Associated Party Transaction rules in December 2021, which seek to prevent inflated commercial deals by subjecting them to assessment by an independent evaluator to determine their “fair market value.” Manchester City views this as a restrictive and anti-competitive measure.
The Premier League had forewarned its clubs of potential legal action by one of its members shortly before Manchester City filed their claim on February 16th. Subsequently, the league informed its clubs in March about the lodged complaint.
While ten to twelve clubs are expected to provide witness statements or letters in support of the Premier League, at least one club has submitted a witness statement in favor of Manchester City’s position.
The outcome of the June hearing is anticipated to impact City’s defense against the 115 charges scheduled for November. These charges allege that the club’s owner, Sheikh Mansour bin Zayed Al Nahyan, deliberately inflated sponsorship deals through third parties, with four of City’s top ten sponsors reportedly having ties to the United Arab Emirates.
Should Manchester City prevail in the upcoming hearing, it could bolster their stance against the 115 charges and potentially ease scrutiny over sponsorship deals, allowing clubs greater freedom in negotiating agreements without independent assessment. However, concerns have been raised that this could further widen the financial gap between richer and lesser-funded clubs in the Premier League.
Manchester City, prior to Sheikh Mansour’s acquisition in 2008, had secured top-flight titles in 1937 and 1968. Since then, the club has clinched the Premier League title in 2012, 2014, 2018, 2019, 2021, 2022, 2023, and 2024, consistently outspending domestic rivals in the transfer market.
