Manchester City has reached a settlement with the Premier League over the validity of sponsorship rules that restrict top-flight clubs from entering deals with companies linked to their ownership. This dispute, focused on the associated party transaction (APT) rules, had the potential to challenge the entire framework of Premier League regulations.
The disagreement stemmed from concerns over the Premier League’s APT rules, which limit the ability of clubs to sign sponsorship contracts with entities that have direct financial ties to their owners. In a joint statement released on Monday, both Manchester City and the Premier League confirmed that they have agreed to end their arbitration proceedings, with City accepting that the current APT rules are legitimate and binding.
This resolution marks the conclusion of a protracted legal battle over the interpretation of these rules. The initial conflict began when Manchester City contested the APT regulations, claiming that certain aspects of the rules were discriminatory. An arbitration panel previously sided with City, ruling that shareholder loans to their own clubs should have been incorporated under APT regulations and that clubs were not provided with adequate information on the fair market value of deals.
Following the ruling, the Premier League revised its rules to comply with the arbitration panel’s findings. However, City continued to dispute the changes and initiated a second arbitration process earlier this year. This latest arbitration has now been resolved, with both parties agreeing to terminate the proceedings.
Despite this resolution, Manchester City remains entangled in a broader disciplinary process. The club is still facing more than 130 charges of breaching the Premier League’s financial rules, which continue to be under investigation. While the APT dispute has been settled, the club’s ongoing legal challenges regarding alleged financial misconduct are expected to remain a significant issue.
As part of the settlement, both Manchester City and the Premier League have agreed not to comment further on the matter, marking the end of a significant chapter in their long-standing legal disputes.
