Man City legal action 'leaves EFL deal in limbo' as furious clubs 'want Prem expulsion'

The legal action taken by Manchester City against the Premier League has reportedly put a £900million deal vital to the financial future of EFL clubs at risk. City want the English top flight to scrap rules limiting the value of sponsorship deals between clubs and companies linked to their owners.

If the reigning Premier League champions are successful in arguing their case, it could land them a significant advantage in the transfer market over clubs unable to capitalise on lucrative sponsorship deals with companies linked to their owners.

EFL clubs are hoping to receive £150m from the Premier League in each of the next six seasons as part of the ‘New Deal For Football’.

Senior Premier League figures reportedly believe City’s legal claim is a key reason why the lucrative EFL deal is yet to be agreed. According to The Times, bosses of Premier League clubs will be reluctant to divert funds to the EFL if they need to spend more to keep pace with the likes of City.

The Sky Blues’ action against the Premier League has been launched several months ahead of a separate hearing into 115 alleged breaches of financial rules – all of which City deny. The same report states that some Premier League clubs are keen to see expulsion from the top flight left on the table as a possible punishment if City are found guilty.

Those clubs are said to be ‘furious’ that City initially approved changes to Associated Party Transaction (APT) rules in 2021, which form the basis of their recent legal challenge against the Premier League.

That challenge will begin with a hearing on Monday and run for a fortnight, with as many as 12 clubs providing letters or witness statements to help the Premier League defend APT rules, according to reports.

The hearing into their 115 charges, meanwhile, will start in November this year and run for approximately six weeks. On the allegations facing City, club chairman Khaldoon Al Mubarak said: “Of course, it’s frustrating. I think the reference is always frustrating.

“Having it being talked about the way it’s being talked about, I can feel, of course, for our fan base, for everyone associated with the club, to have these charges constantly referenced.

“It’s taking longer than anyone hoped for but there is a process we have to go through. I’ve always repeated, let’s be judged by the facts and not by claims and counterclaims.”