Manchester City have launched a fresh legal challenge against the Premier League's new sponsorship rules.
Back in October last year, both Man City and the Premier League claimed respective victories in their fight over Associated Party Transaction rules (APT), after an arbitration panel found that some elements of those rules were unlawful.
APT rules are designed to make sure that any deals that a club does with a company connected to its own owners is fair market value, with the rules ensuring that any deals agreed have not been inflated, which could give clubs more to spend under current financial rules.
Man City claimed they had been unfairly blocked from striking lucrative sponsorship deals with Etihad Aviation Group and First Abu Dhabi Bank, while they also deemed the rules to be part of "a tyranny of the majority".
However, in November of last year, they were defeated when 16 of the 20 Premier League clubs voted in favour of the changes to APT rules, which were prompted by the Citizens' first legal challenge last June.
Now, Pep Guardiola's side are said to have launched a fresh legal challenge against the Premier League over APT rules, with Citizens lawyers having made contract with Premier League officials to seek another arbitration hearing.
Premier League chief executive Richard Masters has written a letter, which was sent out on Thursday, to all Premier League clubs informing them of Man City's latest legal action.
© Imago
Round two: Man City launch new challenge against PL over APT rules
The letter from Masters read: "On January 20, 2025, Manchester City FC began a further arbitration to challenge the APT rules... the new challenge relates to the amendments to the APT rules that clubs approved at the 22 November 2024 shareholders' meeting.
"Manchester City FC seeks a declaration that the amendments approved by clubs in November (and therefore the current APT rules in force) are unlawful and void.
"The Premier League remains strongly of the view that the amendments passed in November were lawful and the APT rules comply with all competition law requirements.
"We consider that the new arbitration must be resolved as soon as possible and, to that end, have agreed that the same tribunal should be appointed to hear the new case.
"The parties are currently corresponding in relation to further directions. The APT rules remain in full force and effect and clubs remain required to comply with all aspects of the system."
Man City's latest legal challenge comes just under a week before representatives of Premier League clubs get together for their first shareholder meeting of 2025 in London next Thursday.
In addition, it now means there are a total of three live legal cases between Man City and the Premier League - two ATP challenges and one covering the well-documented 115 charges levelled against the Citizens for alleged financial breaches.
Man City currently sit fifth in the Premier League table, two points behind the top four and a whopping 15 points behind leaders Liverpool after 24 matches played.
Oliver Thomas
