The end of the 2023/24 Premier League season has already seen some seismic moves that will take effect next season, one being the updated VAR rules.

Elsewhere, a legal battle within the English top flight is brewing as Manchester City launched ‘unprecedented legal action’ against the Premier League as they see themselves as victims of ‘discrimination’ because of the Associated Party Transactions (APT) rules and that the ‘tyranny of the majority’ is attempting to halt their progress as a club.

Their attempt to rip up the Premier League’s voting structure is simply mind-boggling as it requires a super-majority of 14 clubs to pass new rules. City describes this as “the tyranny of the majority” which limits their freedom to make money with rules on sponsorship deals.

These rules forbid related companies (such as Etihad Airways sponsoring a team backed by Abu Dhabi) from injecting cash above the commercial rate determined by an independent assessor. Yet, City claims they are being held back by legacy clubs that want to monopolize success at their expense.

The extraordinary case will be heard from next week and should last two weeks. However, it is pertinent to note that there were longstanding APT laws and Premier League regulations to make sure sponsorship deals aren’t being artificially inflated. 

This is happening amidst the backdrop of the 115 charges City is facing for allegedly breaching these sponsorship rules and their hearing against the Premier League is only a deflection tactic with the hearing for their alleged breaches taking place in November.

It is thought that success in the ATP case could blow a big dent in their FFP charges.

City have won the past four Premier League titles and more than 57% of the available domestic trophies over the past seven years. Man City tickets have also seen an astronomical rise in demand and sales over the past decade. This makes them the most dominant side in top-flight history – more dominant than Liverpool in the Seventies and Eighties (41%), and Manchester United in the Nineties (33).

It is painting the completely absurd picture of a club that wants the liberty to make more money than they currently have, more dominance than they now enjoy and more freedom to spend on players with their bench already worth more than the first team of most of their rivals.

Full-on Civil War

Man City’s unprecedented legal challenge feels like a threat to the English game as if successful, it will blow up the rules determining the fair value of commercial deals and any semblance of a level playing field financially.

More importantly, it poses a great risk to the football pyramid in England as this legal issue was one of the key factors in the Premier League’s failure to agree to a financial deal that is vital for the future of the English Football League (EFL).

EFL clubs are hoping to receive an extra £ 150 million per season over six years from the Premier League under the so-called “New Deal For Football”, in addition to the existing £ 110 million in solidarity payments and £ 40 million in youth development funding. But the negotiations among top-flight clubs collapsed only a few weeks after City filed their claim against the Premier League on February 16.

Other Premier League clubs are reluctant to commit extra funds to the EFL if the financial rules limiting spending in the Premier League are deemed unlawful. If they have to spend more to try to keep pace with clubs like City, then it is even more important to hold on to their funds.

In fact, between 10 to 12 clubs have opposed the new deal for the lower divisions.

£1bn in damages

Elsewhere, some Premier League clubs detect foul play from City and are suing them for £1billion as they believe the hearing against the Premier League is taking place now to secure further sponsorship deals ahead of next season, while also pointing out that City was initially in favour of the sponsorship rules they now claim are unlawful.

The report says:

‘Some clubs may pursue compensation claims totalling more than £1billion against the English champions if they are found guilty of any or all of 115 Premier League charges for breaches of financial regulations. The clubs have sought legal advice and could pursue what they call “placing claims”, meaning compensation for not finishing above City in the league. The 115 charges are due to be heard at a separate hearing in November; City denied any wrongdoing relating to the charges.

‘There is an appetite among some clubs for the independent tribunal hearing the case concerning the 115 charges to not only sanction City with a heavy points deduction but also apply rules that enable the league to expel a club from membership. Clubs have no real desire to see City stripped of previous titles (they have been champions eight times since 2011-12), but they do expect an appropriate level of punishment should there be a guilty verdict.

‘Clubs are furious with City for launching this claim against the Premier League when, The Times can reveal, in November 2021 City initially approved recommended changes to the same Associated Party Transactions (APT) rules they are now claiming are unlawful and anti-competitive.’

For what it’s worth, City are in defence mode ahead of their hearing for the 115 charges and appears willing to spark a civil war among clubs and blow up the structures governing the top flight rather than face accountability for their failure to adhere to rules.

The shameless hypocrisy of the City owners has finally come out to play in the display of the footballing world: 

The same people who said they were investing in City because they cared about regenerating the area are now insistent on getting their way or stopping community funding. They agreed to the commercial deals which they now say are illegal. They now want to destroy the competitive balance and democratic ethos of Premier League decision-making.

It will cause massive headlines in the weeks and months to come, but this legal battle could shake the foundations of English football for decades.