Manchester City is poised to engage in a legal dispute with the Premier League regarding the organization's commercial regulations, with an arbitration hearing scheduled for next week to address the legality of the league's associated party transaction (APT) rules.

The APT rules, which govern the fairness of sponsorship deals in financial terms, are at the center of the dispute and will be scrutinized during the arbitration hearing scheduled to take place from 10th to 21st June.

In February, the Premier League faced threats of legal action over amendments to its regulations, prompting the initiation of the arbitration process.

It has been revealed to the remaining Premier League clubs that Manchester City is the club in question, with the league extending an invitation to the remaining 19 members to provide witness statements as part of the proceedings.

Both the Premier League and Manchester City have refrained from commenting on the case thus far.

The APT rules aim to prevent clubs from entering into sponsorship agreements with entities connected to their owners at inflated values, ensuring that such deals reflect fair market standards.

Tightening of these regulations occurred following a vote by Premier League clubs earlier this year, aiming to maintain integrity and transparency within the league's financial operations.

These regulations are integral to the Profit and Sustainability rules (PSR), which impose a cap on clubs' financial losses over a three-year period, limiting them to a maximum of £105 million.

Ensuring compliance with APT rules helps prevent circumvention of PSR regulations through artificially inflated sponsorship deals.

The Premier League has emphasized that these regulatory changes are intended to enhance the efficiency and accuracy of the financial system governing English football clubs, aiming to uphold financial fair play principles and maintain the league's competitive integrity.