Manchester City release statement confirming end to Premier League legal dispute | OneFootball

The Premier League and Manchester City have reached a settlement which has concluded their long-running dispute over the division’s sponsorship rules.

The case revolved around the Premier League’s Associated Party Transaction (APT) framework, which was originally introduced in December 2021 in the wake of Newcastle United’s Saudi Arabian-backed takeover.

The rules were designed to regulate commercial deals between clubs and companies with close ownership ties, but they have been subject to significant scrutiny and multiple amendments since, with City having long argued that elements of the system were restrictive and unlawful under competition law.

In December 2023, the Etihad club successfully challenged amendments that had been introduced to tighten the APT rules, with a tribunal ruling that excluding low-interest shareholder loans from the scope of the regulations was unlawful.

The judgment was a notable victory for Manchester City, who later hit out at what they described as the Premier League’s “misleading” attempt to suggest swift changes could be made to the framework.

Officials at the club warned they would pursue further legal action if any “knee-jerk reaction” was made to reinsert clauses deemed illegal by the arbitration panel.

Despite Manchester City’s opposition, further changes were voted through in late 2024, with the support of a majority of Premier League clubs. Both City and Newcastle United, who were also directly affected by the rules, expressed concern over the impact of the system on their respective ownership structures and sponsorship strategies.

This escalation led to a two-day hearing earlier this year where both sides presented their legal positions, culminating in the settlement now confirmed.

A statement issued by Manchester City this week 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.

“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 conclusion of the matter ends what has been an expensive and protracted legal row, reportedly costing both sides millions of pounds in legal fees. For City, it provides clarity at boardroom level and avoids further courtroom battles at a time when the club is still awaiting the outcome of a separate, more high-profile case.

That disciplinary process, centred on more than 100 alleged breaches of Premier League financial rules – all of which City strongly deny – remains ongoing, with a landmark hearing expected to shape the club’s long-term standing within English football.

How this settlement might influence Manchester City’s wider legal strategy remains to be seen. With the spotlight continuing to intensify, the stage is now set for the next decisive chapter in City’s ongoing off-field battles.