Premier League and Manchester City Reach Settlement Over Sponsorship Dispute

The Premier League and Manchester City have officially concluded their long-running legal battle regarding the division’s Associated Party Transaction (APT) rules, bringing clarity to a matter that has stretched across several seasons.

The APT framework was first introduced in December 2021 following Newcastle United’s Saudi-backed takeover. It was designed to regulate commercial agreements between clubs and companies linked to their ownership groups. However, the rules faced criticism and multiple legal challenges, with City consistently arguing that they were restrictive and contrary to competition law.

In December 2023, City won a key arbitration ruling which deemed some of the amendments unlawful, specifically those excluding low-interest shareholder loans. Despite this, further changes were introduced in 2024, escalating tensions between the Etihad club and the Premier League.

Following a two-day hearing earlier this year, both parties have now reached a settlement. In a statement, Manchester City confirmed: “The Premier League and Manchester City FC have reached a settlement in relation to the arbitration commenced by the club earlier this year concerning the Premier League’s Associated Party Transaction (APT) Rules and as a result the parties have agreed to terminate the proceedings.”

As part of the settlement, City have accepted that the current APT rules remain valid and binding. Both the club and the Premier League also agreed that no further public comment would be made on the matter.

Implications of the Settlement

The resolution ends a costly and protracted legal battle, reported to have cost millions in legal fees. For Manchester City, it removes a significant off-field distraction at a time when the club is already preparing for a separate disciplinary case relating to over 100 alleged breaches of Premier League financial regulations — all of which they firmly deny.

The conclusion of the APT case ensures greater certainty for City’s sponsorship and ownership model, while setting the stage for further scrutiny when the landmark financial case resumes later this year.

FAQs

• What were the APT rules? – They regulate sponsorship deals and financial agreements between clubs and businesses linked to their owners.
• What did Manchester City challenge? – City argued the rules were anti-competitive and restrictive, winning an arbitration ruling in 2023.
• What does the settlement mean? – The case is now closed, City accept the current rules, and no further legal proceedings will continue.
• What about the 100 financial charges? – That case is separate and remains ongoing, with a significant hearing expected later in 2025.

Conclusion

The settlement closes one chapter in Manchester City’s legal disputes with the Premier League. While the sponsorship row is now resolved, the upcoming disciplinary case will continue to dominate discussions about the club’s long-term standing in English football.