Liverpool contacted the Premier League to encourage them to launch an investigation into Manchester City’s spending after a similar enquiry was opened by UEFA.
The European governing body began looking into City’s financial affairs after leaked documents suggested that the champions may haver contravened regulations on spending under Financial Fair Play rules.
That impulse to act is likely to have been an import of US sports culture, where financial regulations are implemented and enforced to a much more rigorous extent than is traditional in the UK.
The Premier League statement said: ‘The Premier League has previously contacted Manchester City to request information regarding recent allegations and is in ongoing dialogue with the club. The League has detailed financial regulations and strong rules in the areas of Academy player recruitment and third-party ownership.
‘We are investigating these matters and will allow Manchester City every opportunity to explain the context and detail surrounding them.’
Other Premier League sides under American ownership include Manchester United , Arsenal , Fulham and Bournemouth as well as Liverpool and Palace, and each of those parties have interests in US sports teams across the NFL, NBA, NHL and MLB.
Both the NBA and NFL have a long history of regulating the money that comes in and out of its clubs and franchises, with salary caps having been introduced in the 1980’s and 1990’s respectively.
City have maintained their innocence since UEFA announced they were looking into the matter, alleging that the leaked documents published in the German publication Der Spiegel were obtained by hacking and had been interpreted out of context.
The club have said that they welcomed the UEFA investigation and intend to co-operate.
There are currently four on-going investigations into City’s conduct, with the FA looking into allegations that the club paid Borussia Dortmund midfielder Jadon Sancho’s agent a fee when signing him from Watford when he was 14, a payment which would have been in contravention of FA rules.
FIFA are also looking into alleged breaches of third-party ownership rules.