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New Delhi: Manchester City and the Premier League have brought an end to their long-running dispute over rules governing commercial deals. The Premier League's Associated Party Transaction (APT) rules, introduced to prevent clubs from profiting from deals with companies linked to their owners above "fair market value", had been challenged by City in a legal battle.
City had argued that aspects of the rules, which were brought back in 2021 and were unlawful and blocked two of the club's sponsorship agreements including a lucrative renewal with Etihad Airways. While the club didn't win the overall challenge but it was successful in several key points, with an independent arbitration panel previously ruling that seven of the club's arguments were valid, highlighting some flaws in the Premier League's enforcement of the APT regulations.
Under the terms of the settlement, Manchester City has accepted that the current APT rules are “valid and binding.” Both the club and the Premier League have agreed to terminate all proceedings related to the arbitration and neither side will make any further public comment about the matter.
The APT rules were designed to maintain competitiveness in the league and ensure transparency in commercial deals, particularly when they involve companies linked to club owners. Last year, amendments to the rules were approved by a majority of Premier League clubs despite opposition from Manchester City. The dispute revolved around whether the league had the authority to enforce certain provisions, especially the ones that affected high-value sponsorship agreements.
While City did not overturn the rules, the legal challenge allowed the club to highlight concerns about how some regulations were applied, which helped them secure recognition of specific points in their favour. With the settlement done, the chapter of one of the more unusual legal confrontations in English football is closed. The end served as a balance of the interests of both the league and one of its most prominent clubs.
With the matter now resolved, Manchester City are relaxed from one end as they still await the outcome of a landmark disciplinary hearing in which they have been charged by the Premier League for 115 cases over alleged breaches of financial rules.
