The staggering sum the Premier League is rumoured to be spending on the legal battle against Manchester City has been disclosed in a new report.
On Tuesday afternoon, it was claimed that reigning champions City have taken legal action against the Premier League.
As reported by The Times, the legal action launched by the club is to dispute the Premier League’s Associated Party Transaction (APT) rules.
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Starting on Monday, there will be a two-week private arbitration hearing during which City will look to put forward their case for the APT regulations to be halted.
APT rules were first introduced back in 2021 after fellow top-flight side Newcastle United were bought by a Saudi Arabia-led consortium.
The regulations state that all commercial deals have to be independently assessed to be of 'fair market value'.
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However, City believe the rules are unlawful and will seek damages from the league.
Within the report, it was claimed that the Premier League is spending millions on legal fees to fight this case.
As a result, a source is on record as telling the publication that the league’s legal bills have risen four times in the past year from around £5 million to more than £20 million.
In addition, it is believed that the focus of the Premier League’s legal personnel has been shifted to this case when they are also preparing for the hearing into City’s 115 charges relating to Profit and Sustainability rules, which is set to take place in November.
The report stated: “City blame the Premier League for not regulating spending when clubs such as Manchester United were more dominant, arguing they have been prevented from monetising their brand in the way United did. City also say the rules penalise clubs who have ‘lower-profile sporting histories’.
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“City argue that the Premier League have failed to provide evidence that sponsorship deals with related parties give clubs an unfair advantage or distort the league’s competitive balance.”
The final hearing is set to take place from June 10 to June 21.
SPORTbible has contacted Manchester City for comment. The Premier League has declined to comment.
Topics: Premier League, Manchester City, Football
Marcus Chan