Changes in ownership rules are causing a major uprising in the Premier League. It’s thought that Manchester City is the team threatening to file a lawsuit against the league for tightening its regulations on Fair Market Value sponsorship agreements.
Despite discussions between top flight and EFL clubs this week, which are mostly composed of Championship teams, a financial agreement with the EFL seems as far off as ever, despite the Premier League’s optimism.
At a London shareholders’ meeting, the recently tightened Associated Party Transactions Rules and Fair Market Value proposals were approved by the narrowest of margins—12 clubs voted in favor, two abstained, and six opposed.
But after opposing additional curbs with five other clubs, City—who also want to buy winger Savio from a sister club this summer—are reportedly threatening to sue the league in arbitration.
Legal experts view a potential challenge as significant because regulations may be used as evidence when City defends itself against the Premier League’s 115 allegations of financial breaches at an independent hearing.
The teams most affected by a rule change are those that have strong international relationships with other clubs, like Chelsea, Newcastle, and City, as well as Manchester United and Everton if new investment agreements are approved.
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