Manchester City’s latest “discrimination” claim accuses the Premier League of distorting spending check rules in favour of Arsenal and a handful of rivals.
City have taken renewed issue with shareholder loans being spared from the same level of fair market scrutiny as other sources of owner funding. As a result, Arsenal, Brighton, Everton and Leicester City in effect get preferential treatment, a statement of claim to an independent tribunal argues.
The claim, which has now been shared with the 20 member clubs, is part of a wider challenge to amends made last year by the Premier League to Associated Party Transactions (APTs). After previous APT rules were declared “void and unenforceable” in February, City now argue that there needs to be a return to pre-2021 rules until matters are fully resolved.
The rules continue to “discriminate”, the new claim says, adding that they “fail to meet the requirements of transparency, objectivity, precision and proportionality… and are liable to distort competition”.
Sources close to City have consistently drawn issue with shareholder loans not being included in APT calculations. An independent tribunal ruled in October that elements of the rules regarding APTs were unlawful, notably around shareholder loans being exempt from financial calculations, prompting City to declare the entire APT system void.
The APT system was introduced in 2021 following the takeover of Newcastle United by the Saudi Arabian Public Investment Fund and is designed to prevent clubs from agreeing inflated sponsorship deals with companies associated with their ownership.
City’s belief that the system is void was then upheld in February for the three-year period from 2021 until new rules were introduced in November 2024. The ruling did not deal with the validity of amended APT regulations that were voted in late last year, however, which is why City are now challenging them. The outcome of that challenge, expected later this year, is likely to be critical in determining whether shareholder loans should face limits.
City have separately been defending themselves against the 130 Premier League charges for alleged breaches of financial rules. An independent commission spent 12 weeks last year hearing evidence in relation to the charges, with a verdict in football’s so-called “trial of the century” expected in the coming weeks.
