Manchester City are taking legal action against the Premier League over its currency rules.
The legal challenge, in the form of arbitration, will be heard on Monday, according to the Times.
Sky News reported in February that the festival was facing legal battles and had been warned through a club that adjustments to regulations governing similar deals in the party industry were illegal.
The basis of the complaint focuses on the regulation of transactions between associated parties (APT), which ensures that advertising transactions between a club and other legal entities similar to that of the club are carried out at the fair market price.
Manchester City’s lawyers have submitted a 165-page challenge to the Times.
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The spending regulations were created in an effort to bring about an agreement between England’s elite groups by preventing clubs from signing industrial deals at inflated prices, which would allow them to spend even more on their players.
The regulation was first introduced in December 2021 following the acquisition of Newcastle via Saudi Arabia and was supported by most clubs at the time.
City, which won its fourth consecutive Premier League title last month, already has 115 charges for breaching Financial Fair Play (FFP) rules.
The club is owned by sovereign investors in Abu Dhabi and has in the past expressed opposition to stricter regulations on the APT.
The Premier League and Manchester City have been contacted for comment.