The dispute centres on the Premier League's Associated Party Transaction (ATP) rules, which were introduced in December 2021 following the acquisition of Newcastle United by the Saudi Arabian Public Investment Fund. These rules require that all commercial and sponsorship deals involving companies associated with a club's owners must be independently assessed to ensure they reflect fair market value.

Manchester City argues that these regulations are "unlawful" and have resulted in significant revenue losses due to the restrictions they impose. The Times' reporter, Matt Lawton, details the club's claims in a 165-page legal document, asserting that City has been subjected to "discrimination" under these rules.

The legal battle is set to be resolved during a two-week arbitration hearing starting on Monday, June 10. This case could have significant implications for the future competitive balance of the Premier League.

Sky Sports News has reached out to both the Premier League and Manchester City for comments. According to Sky Sports News chief reporter Kaveh Solhekol, "What is being reported is unprecedented. We've got a situation where a Premier League club, Manchester City, the champions of the Premier League, are basically suing the Premier League."

Solhekol adds, "City will argue at the arbitration hearing that some of the league's financial rules are unlawful and incompatible with UK competition law. The specific rules in question are the Associated Party Transaction rules."