Manchester City has initiated legal proceedings against the Premier League, claiming unfair financial rules.
The outcome of the legal proceedings will also have a wide-ranging effect on more than 115 alleged breaches of top-flight regulations against Manchester City.
The move has shocked the football community and led to fissures in some of the game’s biggest clubs.
The latest action by Man City aims to end the current Associated Party Transaction (APT) rules.
These rules prevent clubs from inflating commercial deals to maintain competitiveness in the top flight.
According to Manchester City, it has independently assessed the rules and finds them unlawful.
Manchester City Sues Premier League Over Financial Rules
Man City is also seeking damages and contends that the rules have choked its success, even though it has won the last four Premier League titles in a row.
If Manchester City is successful in its lawsuit, it will enable the club to fully own its sponsorship deals, without independent assessment, and potentially allow the champions to spend more on players and wages.
Among the charges against Man City include not providing accurate financial information about their revenue and failing to cooperate with a Premier League investigation.
Manchester City has argued that sponsors must have the freedom to decide how much they want to pay. It added that the present rules are unfair towards clubs with strong links to the Gulf region.
The Manchester City lawsuit also alleges that the present Associated Party Transaction (APT) rules force the clubs to charge more from fans but limit the ability of the clubs to hire the best players in the from the world.
The present rules also force the clubs to cut funds on numerous ongoing projects, which also include youth development and women’s football.
The hearings are due to begin on Monday and are expected to last for two weeks, and the verdict is expected by June 11.
Man City has also got the support of one more club.
However, over 50% of clubs are firmly on the side of the Premier League.
As already mentioned, the outcome of the lawsuit will have a bearing on 115 charges against the City. If guilty, the club is expected to be slapped with hefty sanctions, including expulsion from the Premier League.
