Manchester City – a Premier League club with deep pockets thanks to its Abu Dhabi owners – is taking the league to court.
It’s over the current Associated Party Transaction (APT) rules which determine whether sponsorship deals are financially ‘fair’ and require independent valuation for such deals. The rules aim to prevent clubs from inflating sponsorship deals with companies linked to their owners, ensuring fair competition.
Man City claim the rules restrict their ability to raise revenue, are unlawful and discriminatory. They argue that sponsors, like those with ties to their Abu Dhabi ownership, should have free rein to set sponsorship prices.
Niall Paterson is joined by our business correspondent Paul Kelso to explain City’s legal action, and the potential repercussions for the Premier League.
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