Man City, Premier League Settle Sponsor Rules Dispute

Man City & Premier League End Long-Running Sponsor Rules Dispute

Manchester City and the Premier League have reached a settlement in their high-stakes legal battle over Associated Party Transaction (APT) regulations — rules that limit how clubs profit from commercial deals with entities linked to their ownership groups.

Legal Challenge Ends

In a joint statement, both sides confirmed the agreement to terminate legal proceedings.

• Man City accepted that the APT rules are “valid and binding.”

• The Premier League has dropped its opposition.

• No further comments will be made by either party.

The settlement follows City’s legal challenge claiming the league’s amended APT rules were “unlawful.”

What Are APT Rules?

APT rules were first introduced in December 2021, shortly after the Saudi-led takeover of Newcastle United, to prevent clubs from inflating commercial income through related-party sponsors.

They ensure any commercial arrangement between a club and a linked entity is tested against “fair market value.”

Despite City’s previous success in challenging some amendments to these rules in 2023 (including shareholder loan exemptions), the Premier League pressed ahead with updates in March and November 2024 — with City, Newcastle, Forest, and Villa voting against.

Tribunal & Legal Fallout

City’s earlier tribunal victory argued that:

• Excluding low-interest shareholder loans was illegal.

• The league’s updated APT regulations breached competition law.

• Retrospective rule changes were unfair and unlawful.

This dispute was not just regulatory — it was financially costly, with both sides believed to have spent millions in legal fees.

Spotlight on Etihad Airways Deal

With the dispute now resolved, Manchester City are expected to resubmit a blocked sponsorship deal with Etihad Airways — one of two Abu Dhabi-linked agreements halted by the league in 2023.

Despite rumors that the settlement includes assurances of its approval, BBC Sport reports that the deal will still undergo a fair market value assessment.

What This Means Going Forward

• APT rules now stand with no further legal threat from City.

• City may proceed with commercial deals — but must pass regulatory scrutiny.

• Premier League governance appears intact, at least for now.

However, this settlement does not affect the far more explosive case still hanging over Manchester City…

City’s 100+ Financial Charges Still Loom

While the APT dispute is over, City still face more than 100 charges of alleged Premier League rule breaches related to financial conduct over several seasons.

• The independent commission hearing concluded nine months ago.

• No verdict has been issued yet.

• City continue to deny all wrongdoing.

This disciplinary case remains the most serious threat to City’s domestic dominance — not the sponsor rules dispute.

Final Word

This peace deal marks the end of one of the Premier League’s most intense legal sagas, with rules now reinforced and City stepping back from litigation.

But in the background, a potentially era-defining verdict on financial rule breaches still looms — one that could reshape the future of the club and the league alike.