Manchester City settle commercial rules dispute with Premier League | OneFootball

Manchester City and the Premier League have called a truce in their long-running legal battle over sponsorship regulations.

The dispute centred on “associated party transactions” (APTs), commercial deals between clubs and companies linked to their owners. These rules, introduced in 2021 after the Saudi-led takeover of Newcastle, are designed to stop inflated sponsorships that could artificially boost revenue and distort competition, and deals must be judged at “fair market value.”

City had challenged amendments to the rules, claiming they were unlawful and anti-competitive. A tribunal partly sided with the club last year, ruling that certain shareholder loans should not fall under APT restrictions. Despite that setback, most Premier League clubs voted to tighten the regulations again in 2024, a move Manchester City, along with the likes of Aston Villa, Newcastle, and Nottingham Forest, opposed and threatened to contest.

However, as reported by BBC Sport, that challenge has now been dropped. In a joint statement, City acknowledged that the rules are “valid and binding” and confirmed both sides will end legal proceedings. No further comment was offered. The settlement ends a costly row that has stretched over two years and millions of pounds in legal fees.

For the league, it secures protections many clubs see as essential for financial integrity. For City, it clears the way to resubmit blocked sponsorship deals, including one with Etihad Airways that was previously rejected on fair value grounds.

Over 100 financial charges still loom over Manchester City

However, the settlement does not touch the bigger storm still hanging over the champions. City face more than 100 charges for alleged breaches of the Premier League’s financial rules, ranging from inaccurate reporting to failure to cooperate with investigations. The club denies all wrongdoing. An independent commission heard evidence nine months ago but has yet to deliver a verdict.

For now, the settlement offers a rare pause in hostilities. But with the looming outcome of the financial case, this is far from the end of Manchester City’s battles with the Premier League.

GFN | Finn Entwistle