CITY SUE LEAGUE - All your questions answered as club launches legal action

CITY, who last month won a fourth successive Premier League title, are suing the league over its financial rules, the Times reported on Tuesday night.

- ISAAC JOHNSON

Here, M.E.N. Sport takes a closer look.

■WHAT HAS HAPPENED?

Back in February, Premier League clubs were told at a shareholders’ meeting that one of their number had issued a legal threat in relation to the league’s associated party transaction (APT) rules, which were first introduced in December 2021 in the wake of the Saudi-led takeover of Newcastle.

It was reported at the time that City were the club who had issued the threat, and on Tuesday the Times reported full details of City’s claim, which it said would be aired at a hearing starting on Monday.

■WHAT ARE THE RULES CITY ARE REPORTED TO BE CHALLENGING?

The APT rules are designed to ensure that any commercial deal or player transfer between a club and entities with links to that club’s ownership are conducted at fair market value, so that club revenues are not artificially inflated.

A club’s declared revenue is a crucial component in calculating compliance with the league’s current profitability and sustainability rules (PSR) which allow a maximum loss of £105million over a three-year assessment period.