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No end in sight to City and Premiership legal battles

The legal battle between Manchester City and the Premier League is likely to continue into next year with a hearing for the latest dispute over sponsorship rules not due to take place until the autumn.

Last month City issued a new claim in response to the Premier League’s attempt to amend sponsorship rules that were declared unlawful and void by an independent tribunal.

The English champions have accused the Premier League of distorting the competition in favour of Arsenal and other rival clubs who have benefited from huge loans from their owners.

In the new statement of claim, City complain that Arsenal, as well as Brighton & Hove Albion, Everton and Leicester City, have had an unfair advantage. They say that shareholder loans — where the owners lend clubs money — worth hundreds of millions of pounds at those four clubs have not been treated the same as other Associated Party Transactions (APTs), such as sponsorship deals with companies linked to club owners.

According to The Lawyer magazine, that hearing is not due to take place until the autumn and, while both the Premier League and City declined to comment on Tuesday, insiders believe it to be correct.

The hearing for City’s original legal challenge against APT rules took place last June, with the tribunal issuing its initial ruling in October. However, it was not until February this year that the final ruling was published in what amounted to a crushing defeat for the Premier League.

The outcome of the case involving City’s 130 alleged breaches of Premier League financial regulations is expected in the coming weeks but the battle over sponsorship rules is now sure to drag on long after that.   As always, the real winners are the lawyers.

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