Manchester City say Premier League commercial revenue analysis ‘unfair’ | Manchester City

Manchester City have accused the Premier League of treating them unfairly in assessing their commercial revenues based on analysis by a data company that also works for their rivals. The Guardian has learned that the league’s review of the fair market value of City’s contracts was carried out by Nielsen Sports, a global data and media valuation company that has contracts with several top-flight clubs.

Manchester City are understood to have raised the Premier League’s use of Nielsen as part of its legal battle over associated party transactions (APTs), in which clubs enter into sponsorship or revenue deals with companies linked to their owners, which was heard behind closed doors last month. A decision on the landmark case is expected soon, although it is unclear when it will be made public.

The club and the Premier League are also preparing to face off in an epoch-making court hearing in November, with the winners of six of the last seven league titles accused of 115 breaches of financial fair play rules. Both sides declined to comment on either case when contacted. City have denied any wrongdoing.

The Premier League appointed Nielsen to help monitor its APT rules when they were introduced in 2021, in a move agreed by the clubs. It is understood that the Nielsen team working for the league on the APT rules is isolated from the rest of its operations, an operation that has eight offices around the world.

Manchester City have lodged a major complaint against the Premier League’s introduction and application of the APT rules, which has resulted in an 11-day arbitration hearing. The club voted against the APTs when they were first introduced three years ago and again when the rules were tightened in February this year.

Manchester City claim the regulation, which aims to ensure that sponsorships received from companies with links to the clubs’ owners have a fair market value, is unlawful because it breaches competition law. If successful, the club will seek damages from the Premier League for losses incurred as a result of sponsorship deals being blocked following analysis by Nielsen.

City bosses also claim that the Premier League’s APT rules are far more restrictive than UEFA’s and want them relaxed. The unprecedented legal action has sparked a civil war within the top flight, with Newcastle, Chelsea and Aston Villa supporting City but Arsenal, Tottenham and Liverpool strongly opposing their claim.

City legal documents claim the rules were designed to “discriminate against Gulf owners”. The bold claim is based on the fact that the APTs were introduced in response to Saudi Arabia’s takeover of Newcastle in 2021.

Last November, City posted a record Premier League revenue of £712.8m, thanks to their treble, an increase of almost £100m on the previous 12 months. Their commercial revenues have surprised other clubs given the size of their global fanbase compared to Manchester United and Liverpool. Three of City’s biggest sponsors have close links to their Abu Dhabi owners, including shirt and stadium sponsors Etihad Airways, Etisalat and Experience Abu Dhabi.

City’s new complaint was filed in February, and the Premier League informed its clubs of the case in March. In another element of the legal challenge, City made an explosive claim about the Premier League’s long-established voting rules. The requirement that 14 out of 20 clubs must vote in favour of any proposal for it to pass has long been hailed as one of the strengths of the competition, but in its legal papers, City argues that the system preserves “the tyranny of the majority”.

Manchester City, the Premier League and Nielsen declined to comment.