Manchester City is embroiled in a legal battle with the Premier League, asserting that the league's scrutiny of their sponsorship deals has led to unjust financial losses. The club's claim, outlined in a 165-page legal document obtained by The Times' Matt Lawton, alleges that the Premier League's regulations have facilitated discrimination by rival clubs against business from the Gulf region, adversely affecting City's on-pitch performance.
The dispute is slated for resolution in a two-week private arbitration hearing scheduled from June 10 to 21. This hearing is separate from Manchester City's challenge of 115 alleged breaches of Premier League regulations and financial rules, set for November.
At the heart of the current conflict is the Premier League's Associated Party Transaction rules, implemented in December 2021 to prevent inflated commercial deals. City contends that this process, which assesses the "fair market value" of income from sponsorships like stadium and shirt deals, is restrictive and anti-competitive.
The Premier League reportedly alerted its clubs to the impending legal action by Manchester City before the claim was filed on February 16, with confirmation of the complaint conveyed to clubs in March.
While ten to twelve clubs are expected to support the Premier League by providing evidence, at least one club has submitted a witness statement in favor of Manchester City.
The outcome of the June hearing could impact City's defense against the 115 charges scheduled for November. Among these charges are allegations that the club's owner, Sheikh Mansour bin Zayed Al Nahyan, disguised inflated sponsorship deals through third parties. Four of City's top ten sponsors reportedly have ties to the United Arab Emirates.
Should Manchester City prevail in the upcoming hearing, it may bolster their position regarding the 115 charges and potentially relax scrutiny over sponsorship deals. This could allow wealthier clubs to enhance revenue streams, raising concerns about increased financial disparity in the Premier League.
Prior to Sheikh Mansour's takeover in 2008, Manchester City had secured two 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, often outspending domestic rivals in the transfer market.
