BREAKING: Man City FFP: Premier League clubs demand dismissal and £1 billion in damages as ATP legal action foils EFL deal

Manchester City’s legal action against the Premier League was a significant factor in the failure to reach a financial agreement with the EFL, as additional information regarding the top-flight civil conflict has been disclosed.

On Tuesday, it was disclosed that City had initiated “unprecedented legal action” against the Premier League. The club believes that the APT regulations have resulted in “discrimination” against them, and that the “tyranny of the majority” is attempting to impede their growth as a club.

They are seeking rules that restrict the amount of sponsorship that companies affiliated with club owners can receive. Their argument will be heard at a hearing that is scheduled to commence on Monday and is anticipated to last for a fortnight.

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This has been alleged to be a deflection tactic by City as they prepare for another hearing in November regarding their 115 alleged breaches of FFP rules. However, it is also believed that success in the ATP case could “blow a big hole” in their FFP charges.

EFL transaction is halted by city deflection
The Premier League has received letters of support from ten to twelve clubs in response to City’s legal action. The Times has disclosed that this action also halted the agreement, which is essential for the financial future of the EFL.

According to sources from senior Premier League clubs, they are hesitant to allocate additional funds to the EFL if the financial regulations that restrict expenditure in the Premier League are deemed illegal.

One prominent Premier League source stated, “We may need to retain that money if we are compelled to increase our expenditures in order to compete with clubs such as City.”

In addition to the current £110 million in solidarity payments and £40 million in youth development funding, EFL clubs are anticipating an additional £150 million per season from the Premier League over the course of six years under the so-called “New Deal For Football.” But the negotiations among top-flight clubs came to a halt in March, a mere few weeks after City submitted their claim against the Premier League on February 16.

On March 1, Kevin Plumb, the general counsel for the Premier League, informed clubs of City’s claim. However, by mid-March, it had become apparent that they had been unable to reach an agreement on a new funding package for the EFL. According to reports, the new agreement for the lower divisions was opposed by as many as ten organizations.

£1 billion in compensation
According to reports, certain Premier League clubs are under the impression that the hearing is currently underway because City is eager to secure additional sponsorship agreements in advance of the upcoming season. They also note that City was initially in favor of the sponsorship regulations that they now assert are unlawful.

The report divulged additional information regarding the state of the Premier League clubs’ civil war:

If the English champions are found culpable of any or all of the 115 Premier League charges for breaches of financial regulations, certain clubs may pursue compensation claims totaling over £1 billion against them. The clubs have obtained legal counsel and may pursue “placing claims,” which refer to compensation for failing to surpass City in the division. The City denies any wrongdoing in relation to the 115 allegations, which are scheduled for a separate hearing in November.

‘There is a desire among certain clubs for the independent tribunal that is hearing the case regarding the 115 allegations to not only impose a significant points deduction on City but also implement regulations that would allow the league to expel a club from membership. Clubs do not have a genuine desire to see City deprived of their previous titles (they have been champions eight times since 2011-12); however, they do anticipate an appropriate level of punishment in the event of a guilty verdict.

The Times has learned that City initially approved recommended changes to the same Associated Party Transactions (APT) regulations in November 2021 that they are now claiming are unlawful and anti-competitive. Consequently, clubs are enraged by City’s decision to file this claim against the Premier League.