The English club is claiming legal costs arising from litigation over rules on agreements with associated companies, which were ruled illegal by an independent court

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Premier League could pay up to 24 million euros after losing lawsuit against Manchester City

The Premier League is facing a major financial setback after losing key litigation against Manchester City. The reason: a regulation introduced by the league to limit deals between clubs and associated companies, deemed by the UK judiciary to be ‘void and unlawful’.

An independent tribunal ruled in February that the rules imposed by the Premiership contravened UK free market law. The rules, introduced at the end of 2021, were intended to curb potential financial advantages for Newcastle United following its takeover by the Saudi Arabian sovereign wealth fund.

Now, Manchester City is demanding that the Premiership bear the legal costs of the process, which could reach 20 million pounds (about 24 million euros), according to estimates by the British newspaper The Times. This figure would include both City's legal fees and the expenses the league has already had to pay for its own legal defence.

Manchester City keeps the legal pulse

Although the Manchester club did not succeed in having the entire regulation overturned, the Premier League managed to pass an amended version with the support of 16 of the 20 teams. However, City still believes the new rules still give an advantage to clubs such as Arsenal by applying different criteria to loans from owners versus contracts with related companies.

The legal dispute does not appear to be over. Manchester City is keeping a watchful eye on the new rules and could return to court if it believes the changes are still discriminatory.

A growing financial hole for the Premier League

This is not the only legal front for the English league. According to The Times, the Premier League spent £50m on legal proceedings last season alone, a figure six times higher than budgeted, largely driven by its litigation with clubs such as Chelsea.