Man City ‘spark Premier League civil war’ by taking unprecedented legal action that could change competition forever
MANCHESTER City are aiming to get the Prem rulebook ripped up – so they can have NO limits on UAE-based funding.
The Prem champions first threatened legal action against Prem chiefs in February, after new rules restricting “related party transactions” squeaked through by a bare majority.
The Times reported legal papers were served within days, with City’s army of lawyers now preparing to lock horns with Prem legal experts in a court case set to cost clubs MILLIONS of pounds in shared fees.
Man City’s actions threaten to ignite a Premier League “civil war”.
City are claiming the related party rules – affecting companies linked to a club’s owners – are “unlawful” and will demand damages from the Prem if they are successful at the anticipated two-week arbitration hearing starting on Monday.
But the Etihad club are also arguing the entire fabric of the Prem rulebook – where any rule change requires a two thirds majority in favour of a proposal – should be torn up.
Documents lodged ahead of the hearing say City believe the rule change – which mandates that all related party deals must pass a “fair market value” test – was specifically designed to “discriminate against Gulf owners”.
That is because the rules were first brought in as a direct response to the Saudi-backed takeover of Newcastle in 2021.
City’s stance is that sponsors linked to club owners should have the right to determine how much they want to pay, irrespective of any independent valuation.
Current club sponsors include Etihad Airways, Etisalat and Experience Abu Dhabi.
Other clubs with related party sponsors include Newcastle and Chelsea, both of whom voted with City against the rule change at the contentious February Prem shareholders meeting.
City suggest the Prem was remiss in not applying restrictions when other clubs – specifically Manchester United – were able to take advantage of their financial superiority in the first 15 years of the League’s existence and that doing so now is a further form of discrimination.
But in another part of the heavyweight 165-page document filed by the club, City also argue the two thirds majority rule – which has been in place since the establishment of the Prem three decades ago – represents the “tyranny of the majority”.
Victory on that aspect of the case would throw the ENTIRE Prem rulebook up into the air and potentially lead to chaos.
It is understood that at least half of the Prem’s 20 clubs are weighing in on behalf of the League to urge the court to throw out the claims.
No matter which side wins, the court costs will be huge, with Prem legal bills already reaching £20m this year.
But if City win and then have their damages claim assessed, it could see the bill for the rest of the Prem skyrocket as all such outgoings are detracted from the League’s TV and sponsorship pot to be shared out between the 20 clubs.
What is less clear, though, is whether a City win would impact on the ongoing 115 charges due to be assessed by an independent commission later this year.
City might use a positive decision as a reason to downplay the significance of any breaches – a number of the allegations relate to claims that the club hid the true source of its finances.
But that has never been an argument made by City to this stage – indeed, it is understood the club’s arguments have been that the alleged payments were not actually made, even if they were discussed.
And Uefa also has existing related party transaction rules which are not subject to the rulings of an English court.
Pep Guardiola set for final Man City season
By Martin Blackburn
AFTER eight glorious years of stability, Manchester City now head into an uncertain 12 months.
And Saturday’s FA Cup final defeat to neighbours United was a reminder that this glittering and unforgettable era will not go on for ever.
Around this time in 2025, City will be preparing for the highly-lucrative Fifa Club World Cup in the US.
Yet in all likelihood they will also be getting ready to say their goodbyes to manager Pep Guardiola, who has brought so much success to the east side of Manchester.
Meanwhile, there could be a verdict on 115 charges of financial irregularity which have been levelled at the club by Premier League chiefs.
The suggestion is the hearing could start later this year but is likely to take several months to reach a conclusion.
City continue to deny any wrongdoing and are confident they will be cleared by the independent commission.
Read Martin Blackburn’s full column here.