Manchester City launch legal challenge to Premier League's rules on sponsorship deals: Reports

Manchester City have reportedly launched another legal challenge against the Premier League over the latest sponsorship deals rules. This comes amid an ongoing dispute between the two parties over an initial challenge to regulations governing the revenue clubs can generate from sponsorship deals linked to their ownership.

Last June, City opened a legal challenge against the Premier League’s Associated Party Transaction (APT) Rules after their deal with Abu Dhabi-based airline Etihad was rejected on grounds that it wasn’t fair market value.

However, the Cityzens lost the legal battle in November after most of the top-flight clubs voted in favor of the changes to the APT Rules.

Meanwhile, an arbitration panel later found out that a few elements of the APT Rules were 'unlawful.' Now the Daily Mail reports that Manchester City’s lawyers have reached out to Premier League officials that they will seek another arbitration hearing over the modifications made to the APT Rules.

There are three ongoing legal cases between Manchester City and the Premier League. The first involves over 100 charges related to alleged breaches of the league's financial regulations, which the club have consistently denied. The second pertains to the initial APT challenge while the third is the newly filed case.

The APT Rules were introduced in 2021 in the aftermath of Newcastle’s acquisition by Saudi Arabia’s Public Investment Fund (PIF). The rules are designed to regulate commercial deals between clubs and companies linked to their owners.

They are intended to prevent sponsorships from being artificially inflated which could undermine the league’s financial rules.

What has Premier League said in response to Manchester City’s latest legal action?

In the aftermath of City’s reported legal challenge, the English top-flight has now responded. According to The Times, Premier League chief executive Richard Masters wrote in a letter to clubs:

"On January 20, 2025, Manchester City FC began a further arbitration to challenge the APT rules. As you will see, 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."

Masters continued:

"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."

Manchester City face more than 100 charges of alleged financial breaches from the Premier League.