Man City believes they are victims of ‘discrimination against Gulf ownership’ by other Premier League clubs.
Manchester City has launched a legal battle against the Premier League, claiming they are victims of “discrimination against Gulf ownership” by other top-flight clubs. And the argument might have far-reaching consequences for rivals such as Liverpool and Everton, as well having a substantial impact on the November hearing into City’s 115 alleged breaches of Premier League financial regulations. According to the Times, City intends to eliminate the league’s Associated Party Transaction rules, which they argue are illegal, and will seek damages from the Premier League.
The guidelines were implemented in December 2021, following the Saudi-led takeover of Newcastle United, and are intended to prevent teams from inflating commercial relationships with companies associated to their owners.
For example, Abu Dhabi-owned City’s stadium and jersey sponsor is United Arab Emirates airline Etihad Airways, while Newcastle and Chelsea have partnerships with corporations tied to their principal investors. Such deals must be independently analysed for “fair market value”.
City, which has won a record four Premier League titles in a row and six of the previous seven, believes the financial restrictions are anti-competitive. Their case also involves a number of other accusations filed against various legislatures by the governing body.
A two-week private arbitration hearing, which begins on Monday, will put City on par with many of their Premier League rivals, with the one-time European champions arguing that the league’s democratic system, which requires at least 14 clubs to implement rule changes, gives the majority an unacceptable level of control.
According to the Times, a 165-page legal document created by City alleges they are the victims of “discrimination against Gulf ownership” and that the Associated Party Transaction laws were passed by rivals to end their Premier League dominance and are a “tyranny of the majority.”
While it is reported that at least one Premier League club has issued a written statement in favour of City, more than half are said to be siding with the governing body. The City filed the case in February, and written statements had to be submitted by the end of March. When contacted by the ECHO, the Premier League declined to comment.
If City wins their legal case, the richest teams will be able to value their sponsorship deals without an impartial review from the Premier League. It would also potentially damage the Premier League’s case against City on the 115 counts of alleged financial malfeasance. If proven guilty, City, which has consistently denied any misconduct, could face enormous fines, point deductions, or possibly relegation.
The case is not the first time City has alluded to prejudice in the Premier League. In October 2022, one national newspaper reported that Etihad insiders believed comments made by then-Liverpool manager Jurgen Klopp were “borderline xenophobic” when he said “there are three clubs in world football who can do what they want financially” – an implicit reference to City, Newcastle, and Paris Saint-Germain, all owned by the Gulf.
Klopp later rejected such allegations, with the Football Association believing there was no reason to charge the German, a position supported by anti-discrimination groups.
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