Manchester City have taken the next step in their latest legal action against the Premier League over Associated Party Transactions, Sky Sports News understands.
Other clubs have been notified by the Premier League about the statement of claim.
The Premier League isn’t making any comment, but this latest development was expected and is part of the ongoing legal process.
The APT rules regulate commercial deals entered into between clubs and companies linked to their owners, requiring them to be of “fair market value”.
This legal action is separate to the one covering more than 100 charges against City for alleged breaches of Premier League financial rules. City deny the charges.
APT rules were first introduced in December 2021 after the Saudi takeover of Newcastle to ensure commercial deals with companies linked to clubs’ ownership were at a fair market value.
They also targeted the revenue that could be raised by Abu Dhabi-backed City from state entities through sponsorship.
City brought the legal challenge after being blocked by the Premier League from advancing new, more lucrative deals with Etihad Airways and First Abu Dhabi Bank. The Premier League champions are owned by UAE vice-president Sheikh Mansour.
An arbitration panel ruling in February found fault with the Premier League’s ability as a regulator to create rules follows an initial verdict in October.
The league responded to that by rewriting three areas of the rules found to be illegal and the revisions were passed by a majority of clubs in November.
Most notably, the fair market value of shareholder loans now has to be factored into assessments about the profit and sustainability of clubs which determine how legitimate income is.
The league also ensured clubs would have earlier access to a databank with comparable sponsorship values to assess their deals against.
Premier League chief executive Richard Masters believes those new rules replaced the ones now found to be void by the tribunal – attempting to underplay the impact of this ruling.
But City are also challenging the legality of the new rules that are designed to prevent the wealthiest clubs from inflating the value of deals to spend more on players and comply with Profit and Sustainability rules (PSR).
Clubs can only lose £105m over three years under PSR, which will remain in place into next season amid legal challenges blocking new regulations.
City are hoping a panel rules for the third time in their favour, arguing that the Premier League amended rules in November that it has now been found should never have been in place.
This is all before the verdict is delivered on a far bigger and more consequential case, with a verdict due imminently into more than 100 alleged breaches of financial rules stretching back to 2009.
