Manchester City are taking legal action against the Premier League over its financial rules.

The legal challenge, in the form of arbitration, will be heard on Monday, according to The Times.

Sky News reported in February the competition was facing legal battles and had been warned by a club that changes to rules governing commercial deals between related parties were unlawful.

The basis of the claim centres around associated party transaction (APT) regulations, which ensure that commercial deals between a club and other corporate bodies linked to club owners are done at a fair market price.

A 165-page challenge has been issued by Manchester City’s lawyers, The Times report said.

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The spending rules were created with the aim of ensuring a level playing field among elite English teams by stopping clubs signing commercial deals at inflated prices, which would enable them to spend even more on players.

The rules were first introduced in December 2021 in the wake of the Saudi-led takeover of Newcastle and were supported by the majority of clubs at the time.

City – who won a record-breaking fourth consecutive Premier League title last month – are already contesting 115 charges of breaching Financial Fair Play (FFP) rules.

The club is owned by Abu Dhabi sovereign investors and has previously expressed its opposition to tighter APT rules.

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The Premier League and Manchester City have been contacted for comment.

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