Man City launch legal action against Premier League with hearing set to have massive impact on 115-charges case

The Premier League champions have taken legal action in a bid to end current Associated Party Transaction (APT) rules which are designed to stop clubs from inflating commercial deals in a bid to maintain competitiveness in the top flight. City believe the regulations, that state such deals have to be independently assessed, are "unlawful." The club are also seeking damages in the belief such rules have stifled their success on the pitch despite having won the last four Premier League titles in a row, as reported by The Times.

Victory for City in their lawsuit would allow the club to value their own sponsorship deals, without independent assessment, and potentially permit the champions to spend more on players and wages. The lawsuit could also a huge impact on City's autumn hearing into 115 alleged breaches of the Premier League’s Financial Fair Play rules. Those charges relate to City not providing accurate financial information about their revenue and failing to co-operate with a Premier League investigation.

City argue in their lawsuit that sponsors should be allowed to decide how much they want to pay and also claim that the current rules are discriminatory towards clubs with strong links to the Gulf region.

The Times reports that City's lawsuit states the current Associated Party Transaction (APT) rules force the club to charge fans more for tickets and will limit their ability to buy the best players in the world. The Premier League champions also claim that as a result of such rules, the club will ultimately be forced to cut funds on a number of projects including youth development and women's football.

The hearing is due to start on Monday and will last just under two weeks. The report claims "at least one" club has sided with City but "more than half" are with the Premier League. A verdict is expected on June 11 which could potentially have huge ramifications for the English top flight and City's subsequent hearing on their 115 charges. There has already been speculation that City could face hefty sanctions if found guilty of such charges, including expulsion from the Premier League.