Saturday, November 23, 2024

Man City legal action: Champions to face Premier League over financial rules

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The legal challenge to the Premier League’s commercial rules cannot be overestimated in terms of importance.

Quite apart from the fact it has put member clubs on different sides, by definition, if City win, the concept of the Premier League being able to analyse commercial deals for ‘Fair Market Value’ would be undermined.

That would mean associated parties – companies with links to clubs – could put in sponsorship deals as high as they wanted with no challenge, thus raising the amount available to spend under PSR rules.

Beyond that, it would call into question the validity of some of the rules, albeit historic, under which City are being charged by the Premier League in the case that is scheduled to take place in the autumn.

In addition, City are challenging the Premier League rule that 14 clubs have to agree to something before it can be made into a regulation – scrapping VAR at Thursday’s annual meeting for instance.

The outcome will be fascinating. The fact the hearing will last two weeks and is taking place in private means it is not entirely clear when – or how – we will find out what has happened.

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