Report: Man City suing EPL for damages, accuse rivals of 'discrimination'

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Manchester City are launching an unprecedented legal fight with the Premier League, claiming the competition's scrutiny of sponsorship deals is unlawful and has incurred losses for the club, according to a 165-page legal document obtained by The Times' Matt Lawton.

The dispute is set to be resolved during a two-week private arbitration hearing between June 10-21. It's a separate hearing to Manchester City contesting their 115 alleged breaches of the Premier League's regulations and financial rules, which is set for November, according to Lawton.

In the battle set for this month, City argue that the Premier League's system of needing 14 of its 20 clubs to vote in favor of rule changes has allowed rival clubs to display "discrimination" when limiting business from the Gulf region and deliberately attempt to stifle their on-pitch success, the document reads.

The complaint follows the introduction of the Associated Party Transaction rules in December 2021, which aim to prevent overinflated commercial deals by having an independent assessor judge whether income such as stadium and shirt sponsorships are of "fair market value." City believe this is a restrictive and anti-competitive process.

The Premier League warned its clubs of the threat of legal action by one of its members shortly before Manchester City filed the claim on February 16. The league informed its clubs in March that the complaint was lodged, according to Lawton.

Ten to 12 clubs will support the Premier League by providing witness statements or letters detailing evidence, while at least one club has submitted a witness statement in support of Manchester City, The Times understands.

The result of June's hearing clearly has links to City's later hearing for allegedly breaking 115 Premier League rules between 2009 and 2023. The main charges against City in November's legal wrangle are that Sheikh Mansour bin Zayed Al Nahyan, the club's owner and a member of the Emirati royal family, disguised deliberately inflated sponsorship deals through third parties, and four of City's top 10 sponsors have ties to the United Arab Emirates, Lawton reports. Rules were already in place to try to ensure commercial deals represented fair market value before they were tightened further in 2021.

If Manchester City win the upcoming hearing, it would likely strengthen their defense of the 115 charges while paving the way for clubs to negotiate sponsorship deals with no independent assessment. Loosening the scrutiny over sponsorship deals would make it easier for the richer clubs to significantly boost their revenue streams, freeing up more funds to spend on transfers, and therefore raising concerns that the strong will only get stronger in the Premier League.

Manchester City won two top-flight titles, in 1937 and 1968, before Sheikh Mansour's takeover in 2008. The club has since finished atop the Premier League in 2012, 2014, 2018, 2019, 2021, 2022, 2023, and 2024 while regularly out-spending their domestic rivals in the transfer market.