Manchester City set to sue English Premier League as court hearing begins later today

Manchester City has declared battle on the Premier League, suing the league over its financial regulations in a move of unprecedented magnitude that has shocked and divided some of the game's most powerful clubs. Outraged Etihad Stadium executives have submitted a 165-page court document saying they are victims of 'discrimination' and that laws passed by rivals that they believe are intended at limiting their achievements are the 'tyranny of the majority'.

The two-week private hearing begins soon, and the outcome could have far-reaching implications for the 115 allegations levelled by the Premier League against City for alleged accounting violations. The hearing is scheduled for November and might result in massive fines and possibly relegation if Pep Guardiola's champions are proven guilty.

In an explosive development that has seen battle lines established and some teams take sides, City claims the league's Associated Party Transaction (APT) rules have been illegal and seeks to have them overturned. They are also seeking damages, which some say might amount to many millions of dollars. 

Under APT, which was implemented following the Saudi-led acquisition of Newcastle in 2021, teams are prohibited from inflating sponsorship arrangements with corporations close to their owners. Instead, all transactions must be independently assessed as having 'fair market value' (FMV).

10-12 Premier League clubs set to vote against Manchester City

The English Premier League is requesting teams for statements from witnesses to back up their claims. As to The Times, which broke the news, around 10 and 12 people have came forward to help the competition, with at least one coming forward to back City. Each may be requested to give testimony at the tribunal. Others have encouraged the league to offer greater openness and knowledge about the structure and how it works.

Newcastle, which is majority-owned by Saudi Arabia's Public Investment Fund, has a jersey sponsorship arrangement with Saudi rights business Sela, while Chelsea has a similar partnership with Infinite Athlete, which includes the club's majority shareholders Todd Boehly and Behdad Eghbali.