Manchester City open to complete new eye-watering Etihad Airways sponsorship deal | OneFootball

Officials at Manchester City have now seen the path paved to complete a brand new sponsorship agreement with Etihad Airways, new reports have confirmed.

The development follows the conclusion of a long-running legal dispute between City and the Premier League over the Associated Party Transaction (APT) rules, which were first introduced in 2021 after the Saudi-backed takeover of Newcastle United.

The rules were designed to ensure that commercial deals with related parties were struck at ‘fair market value’, but City have repeatedly argued that the framework unfairly targeted their commercial partnerships.

The dispute escalated after the Premier League blocked an updated Etihad Airways deal in 2023, ruling that it did not meet the required fair market value standards. This sparked frustration at the Etihad Stadium, with City claiming the Premier League’s approach was unlawful and anti-competitive.

A tribunal later sided with the club, ruling in 2024 that certain amendments to the APT framework breached competition law and that shareholder loans should not be excluded from consideration.

After months of hearings, counterclaims, and the threat of further appeals, the two parties confirmed last week that they had reached a settlement. As part of the agreement, City accepted the validity of the current APT rules but secured assurances that future sponsorship agreements would not face discriminatory treatment compared to rival Premier League clubs.

As reported by MailSport’s Mike Keegan, the Premier League has now contacted clubs to inform them that they have agreed a settlement with Manchester City, and that the hearing over sponsorship rules will no longer take place.

The report further reveals its understanding that barriers to the club’s Etihad Airways deal – blocked by the Premier League in 2023 as it was not deemed to be of ‘fair market value’ under the rules – have now been removed.

As for the feeling at Manchester City, it is detailed that the club are confident that they will not be treated differently to any other top-flight club going forward.

The last agreement penned between Etihad and City was signed in 2011 for 10 years and worth £400 million, and while no details have been released about a proposed new agreement, MailSport states it is expected to mark a ‘significant uplift’ on the deal signed 14 years ago.

Looking ahead, a fresh Etihad deal could deliver a huge financial injection at a pivotal time for the Premier League giants.

With key players like Rodri and Phil Foden expected to be offered lucrative new contracts in the coming months, City’s boardroom may use the uplift to fund renewals while also driving investment in infrastructure projects, such as the expansion of the Etihad Campus.

The news will also be viewed against the backdrop of Manchester City’s ongoing legal battle with the Premier League over more than 100 alleged financial breaches. While this separate case remains unresolved, some believe securing commercial certainty with Etihad could strengthen the club’s stance by demonstrating stability and continued sponsorship appeal.

For Etihad Airways, renewing and strengthening its ties with City ensures ongoing global exposure, particularly as the airline continues to expand its international footprint. For City supporters, the agreement would reaffirm the deep-rooted partnership that has become a defining part of the club’s modern identity.