Man City drag Arsenal into Premier League legal battle with claim rules have been 'distorted' in Gunners' favour - as champions continue to wait on 115 charges verdict

According to The Times, City have launched a stinging attack on what they describe as discriminatory practices surrounding financial contributions from club owners, known as shareholder loans. The latest twist in this ongoing legal saga comes as City challenge the Premier League’s revised guidelines on Associated Party Transactions (APTs). They argue that while sponsorship deals linked to club ownership are strictly scrutinised, vast owner-funded loans provided to other clubs are not subject to the same oversight - a disparity City insists distorts fair competition.

This dispute stems from a tribunal ruling that previously found aspects of the Premier League’s APT regulations to be invalid. The panel, made up of three legal heavyweights — Sir Nigel Teare, Lord Dyson, and Christopher Vajda KC — determined that the amended rules were unenforceable. Following that verdict, City are now pushing for the reinstatement of the pre-2021 regulations, arguing that current rules continue to favour select clubs and lack transparency.

The club has accused the Premier League of giving Arsenal, Brighton & Hove Albion, Everton, and Leicester City an unjust competitive edge by allowing them to operate under what City calls a “preferential exemption.” They’ve highlighted the vast sums involved: Arsenal reportedly received £259 million in loans from owners during the 2022–23 campaign, Brighton £406.5 million in 2021–22, Everton £450 million in 2022–23, and Leicester £265 million in 2021–22. City argue that these sums represent a significant economic boost that has not been held to the same regulatory standards as their own sponsorship-linked income.

Manchester City believe the inconsistent treatment of financial inflows is deeply damaging to competitive integrity. They describe the current APT framework as failing to meet fundamental principles such as transparency, fairness, and proportionality. In their statement, the club warns that this "continued preferential and discriminatory treatment of shareholder loans" actively contributes to financial imbalance across the league.

While this particular legal challenge is separate from the 130 financial breach charges already levelled against Manchester City, the implications could be widespread. Moreover, they argue that the Premier League’s retrospective efforts to determine the fair market value of these shareholder loans were poorly executed. Rather than calling on financial experts to assess the technical nature of the transactions, the league instead assigned two part-time board members to the task - a move City says shows the inadequacy of the process.