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Article continues belowArticle continues belowArticle continues below<script type="application/json" data-placement="fcplayer-semantic">{"type":"fcplayer-semantic","data":{"embedCode":"//cdn.fcp.codes/embed-code-template/embed-code-template.js#SEMANTIC_5704afb8-c10b-4ba5-9cb4-d7fb6098ef90"}}</script><ul><li>Man City launch unprecedented legal action</li><li>Attempting to scrap rules on sponsorship limits</li><li>Legal action to be heard on Monday</li></ul>

How Man City's legal action against the Premier League threatens £900m EFL funding deal - explained

Premier League

Tottenham

<a href="https://www.goal.com/en-gb/lists/man-city-launch-legal-action-premier-league-hearing-set-massive-impact-115-charges-case/blteacf3f33a71879e9" target="_blank">Manchester City launched their legal action against the Premier League earlier this week</a>. They are seeking to challenge the rules that limit how much can be paid to clubs by companies that are linked to ownership groups. Rival clubs are fearful that City will be successful, in a move they believe could potentially spoil the competitiveness of the top flight, and it could also have a detrimental impact on the EFL.

WHAT HAPPENED?

<a href="https://www.thetimes.com/sport/football/article/man-city-legal-action-premier-leauge-efl-deal-t93rx8vmn" target="_blank">The Times</a> reports that between 10 and 12 clubs are supporting the Premier League's defence but sources within the division are now citing the claim as reason for failing to agree a deal with the EFL. The belief is that if the financial rules are scrapped - and also deemed unlawful - they will not be willing to provide handouts.The EFL were hoping that the 'New Deal For Football' would provide a cash injection of £150m ($192m) per season over six years, but talks first collapsed earlier this year, in March, just months after City filed their legal claim.

THE EXPLANATION

<a href="https://www.goal.com/en-gb/lists/social-media-explodes-everton-second-points-deduction-premier-league-financial-rules-breach-man-city-next/blt128d70f0b3e7056b#cs725459f2ee75d228" target="_blank">City are under investigation for 115 Financial Fair Play breaches</a> and the report claims clubs could seek compensation directly from the champions if they are found guilty. The claims could cost the club over £1 billion ($1.3bn), in what could be a nightmare scenario for Pep Guardiola's side. <a href="https://www.goal.com/en-gb/lists/man-city-115-charges-couldnt-be-any-more-serious-premier-league-relegation-inevitable-found-guilty/blt2b667f077f5fb92d" target="_blank">Another potential consequence could see the club relegated</a>.

DID YOU KNOW?

Civil war is seemingly underway but the hearing will begin next Monday. Parliament in the UK has continued to pressurise Premier League clubs to pay the EFL but 10 clubs voted against the funding agreement earlier this year. Those in the Championship, League One and League Two will hope desperately City are unsuccessful.

WHAT NEXT?

How Man City's legal action against the Premier League threatens £900m EFL funding deal - explained | Goal.com UK

Manchester City&apos;s legal action against the Premier League has put at risk a £900m funding deal for the Football League.

How Man City&apos;s legal action against the Premier League threatens £900m EFL funding deal - explained