Manchester City's legal challenge against Premier League's sponsorship valuation rules, reported by The Times, could reshape football's financial landscape. The club contests regulations requiring independent valuation of deals linked to owners.
Manchester City has made headlines by launching unprecedented legal action against the Premier League, as reported by The Times. The club is challenging the league's Associated Party Transaction (ATP) rules, which mandate that commercial deals with companies linked to club owners must undergo independent valuation to ensure fair market value. City argues these rules are "unlawful," seeking damages for revenue losses incurred due to the regulations.
The dispute, set for a two-week arbitration hearing, questions the legality of financial regulations introduced in 2021, following Newcastle's acquisition by the Saudi Arabian Public Investment Fund. Sky Sports News reports potential implications for the Premier League's competitive balance.
This development intersects with Man City's existing 115 charges from the Premier League, which include alleged breaches of financial fair play rules spanning over a decade, with a hearing scheduled for November.
Chief Reporter Kaveh Solhekol notes that a successful challenge to the ATP rules could impact the league's case against Man City's alleged financial violations.
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