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Manchester City fights the Premier League against its sponsorship regulation

Manchester City fights the Premier League against its sponsorship regulation

The English club considers that the rules on agreements between related parties, such as those it has with Abu Dhabi companies, limit its ability to negotiate. The standard only asks for prices adjusted to the reality of the market.

Reuters

He Manchester City takes to court Premier League. The Abu Dhabi-controlled club considers the new regulation on agreements with related parties “illegal” and “discriminatory” (associated party transactionin English),

The legal dispute will be resolved in the coming weeks in private arbitration, which could have important consequences on the competitive balance of English football.

The team led by Ferran Soriano understands that it should have complete freedom to demand certain amounts from its potential sponsors, regardless of whether they have a direct or indirect shareholding relationship. In his opinion, the fact that an independent agency measures whether or not prices adjust to the reality of the market and the contracted assets slows down its ability to generate new income.

These rules were introduced at the end of 2021, in the midst of Saudi Arabia’s arrival as a shareholder in Newcastle United through the Public Investment Fund (PIF). The club has already signed a company from the country, Sela, as main sponsor, achieving a strong jump in income to compete with more options to enter European competitions.

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The legal dispute between City and the Premier will be resolved in the coming weeks in private arbitration, which could have important consequences on the competitive balance of English football.

The legal dispute between City and the Premier will be resolved in the coming weeks in private arbitration, which could have important consequences on the competitive balance of English football.

Reuters

If City’s criteria are imposed in court, the dozen teams that explicitly support the Premier fear a strong competitive gap. The reason is none other than, both the rules of UEFA, Like those proposed to be introduced by the future English football regulator, they establish spending limits on squads to the volume of income. In other words, the more commercial income, the greater the ability to invest in footballers.

This is not City’s only open conflict with the Premier, since both parties will appear in court at the end of 2024 for the 115 alleged infractions in economic matters that the club would have incurred. Manchester.

Source: Ambito

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