Premier League clubs have been warned that the cost of the civil war that threatens to tear the top-flight apart could be huge.
Mirror Football understands that a growing number of teams are now supporting Manchester City’s bid to have current Associated Party Transaction rules declared illegal following a ruling by an independent tribunal that the current framework does not meet with UK competition law.
City are also fighting the Premier League over 115 allegations of failing to supply accurate financial information in a separate case that began three weeks ago and is expected to last at least another two months.
And last season, both Everton and Nottingham Forest were docked points for failing to meet Profit and Sustainability Rules in two more expensive legal battles.
Top sports lawyer Simon Leaf, a partner with international law firm Mischon de Reya, believes the world’s richest domestic football league could pay a heavy price when it comes to negotiating future deals with broadcasters and potential sponsors.
Leaf said: “If the Premier League is seen fighting constant legal battles with its member clubs then that does serious damage to the brand.
“This is a league that is seen as one of the country’s crown jewels. It is the envy of all the other leagues around the world.
“The damage might not happen overnight, but when the game is being played out in court rooms rather than on the pitch then it isn’t the kind of thing that sponsors and broadcasters will want a piece of.
Other clubs are backing City in the row over APT rules (
Joe Prior/Visionhaus)
“There will be damage to the brand that you can’t put a number on at the moment. It is often said that there is no such thing as bad news – but ultimately when it comes to external sponsors, especially from overseas, looking at who they want to partner with there maybe more of a temptation now to perhaps go with La Liga rather than the Premier League.
“A civil war like this really isn’t good for business. It brings the Premier League into disrepute.”
The Premier League currently banks more than £3.5 billion-a-year from world-wide TV rights.
A new domestic deal with Sky and TNT worth £6.7 billion over four years kicks in next season. That is £2 billion more than La Liga currently earns and almost £3 billion more than the Bundesliga.
