How Manchester City's shock legal action against the Premier League could affect Peterborough United

The Times, who broke the story of City’s attempt to sue the Premier League for alleged discrimination against Gulf ownership, are now reporting the action could threaten a proposed £900m EFL funding deal.

City are trying to end the Associated Party Transaction (APT) rules which limits the amount of sponsorship money club owners can provide through companies they own. The APT regulations were introduced following the takeover of Newcastle by Saudi Arabia's Public Investment Fund in 2021.

Some see City’s lawsuit as a cynical ploy to sink many of the 115 charges currently standing against them as many relate to breaches of the current financial fairplay rules involving sponsorship.

A hearing on those charges is scheduled to take place later this year, but City’s own lawsuit is set for Monday and success for the Premier League champions after a case expected to run for two weeks could have huge consequences on the the outcome of the club’s alleged breaches of competition rules.

An now the Times insist they have sources at other Premier League clubs are blaming the court cases for the breakdown in agreeing a new financial package for EFL clubs. More than one source has apparently told the newspaper they are reluctant to commit extra funds to the EFL if the financial rules limiting spending in the Premier League are deemed unlawful.

One said: "If we have to spend more to even try to keep pace with clubs like City, we might need to hold on to that money.”

EFL clubs are hoping to receive an extra £150 million per season over six years from the Premier League under the so-called ‘New Deal For Football’, in addition to the existing £110million in solidarity payments and £40million in youth development funding.

The Premier League clubs failed to vote the proposed new deal through in March after 10 of the 20 clubs voted against it. Changes to top-flight rules have to be approved by 14 clubs.