Manchester City and the Premier League have reached a settlement in their dispute over Associated Party Transaction (APT) rules, avoiding a legal trial that had been scheduled for October.
The arbitration, launched by City on January 20, challenged the league’s framework designed to ensure commercial deals between clubs and entities linked to their ownership are struck at fair market value.
The settlement ends the case, with City accepting that the current APT rules are “valid and binding.” Both parties have agreed not to make further comment.
In a joint statement, City and the Premier League said:
“This settlement brings an end to the dispute between the parties regarding the APT rules. As part of the settlement, Manchester City accepts that the current APT rules are valid and binding. It has been agreed that neither the Premier League nor the club will be making any further comment about the matter.”
The case was separate from the 115 charges of alleged financial rule breaches the Premier League brought against City in February 2023.
That case, heard by an independent commission between September and December last year, remains unresolved. City deny all charges, and no date has been set for the judgement.
Why City Challenged the Rules
City’s arbitration stemmed from proposed sponsorship deals with Etihad Airways and First Abu Dhabi Bank in 2023, which the Premier League blocked under APT rules.
The club argued the regulations were unlawful, and last September an independent panel ruled that key elements of the 2021–24 rules were void and unenforceable.
City subsequently launched a fresh legal action against the amended rules. But Monday’s settlement brings the matter to a close, with the Premier League’s revised framework now in force.
Sky Sports News’ Kaveh Solhekol described the settlement as “very significant,” noting that while City initially won a partial victory, they have ultimately agreed to comply:
“On the face of it, it was a big victory for City when the tribunal declared some of the old rules unlawful. But today’s settlement means City accept the new rules are valid and binding.”
The spotlight now shifts back to the unresolved 115 charges case, which carries potentially far greater consequences for the reigning champions.
