Premier League club executive threatens to ‘walk away’ over Manchester City legal battle | OneFootball

Manchester City’s legal battle with the Premier League over Associated Party Transaction (APT) rules has caused significant frustration in the division.

The APT framework, introduced in 2021 after Newcastle United’s Saudi Arabian-led takeover, was designed to ensure sponsorships and commercial deals linked to club owners were agreed at so-called ‘fair market value’.

Manchester City have been the most vocal opponents of the rules, arguing that repeated amendments – particularly those made in 2024 – were unlawful and unfairly targeted their commercial growth.

City successfully challenged aspects of regulations last year, with a tribunal ruling attempts to toughen rules had breached competition law. The victory prompted a fierce backlash from rival clubs, who feared the decision would clear the path for City to massively expand sponsorship deals, such as with long-term partner Etihad Airways, without effective regulation.

Earlier this summer, the legal row was brought to an end after a settlement was reached between the Premier League and City, with the club accepting the binding nature of the current rules in exchange for the termination of proceedings.

While that closed one chapter, tensions remain raw across the league, with executives at other clubs still voicing anger at how the case unfolded.

According to the information of MailSport’s Ian Herbert, many Premier League clubs had feared that the entire competitive balance of English football would be destroyed if Manchester City won their legal bid to remove APT rules in their current form.

One senior Premier League club executive is claimed to have stated that his team ‘might as well walk away from the idea of competing with City’ if the APT case was lost, while one unnamed source suggested that a number of clubs were ‘losing their s**t’ with City.

The comments reflect just how high the stakes were perceived to be in boardrooms across English football. For many clubs outside of the so-called ‘big six’, the fear was that Manchester City’s commercial reach – especially via Abu Dhabi-linked partners – could leave the rest of the league unable to compete financially.

Even those inside the traditional elite are understood to have privately expressed concern at what a weakened rulebook would mean for their own ability to keep pace. Speculation now turns to what the settlement will mean in practice.

With the path reportedly cleared for a renewed Etihad Airways sponsorship, Manchester City could be set to announce a significantly more lucrative deal than the £400 million agreement signed in 2011.

For rival clubs, this could reignite concerns that the settlement has done little to level the playing field, even if the Premier League insists the APT rules remain intact.

Meanwhile, City’s ongoing disciplinary case – centred on more than 100 alleged breaches of financial regulations, which the club strongly denies – ensures that the wider legal battle between Etihad Stadium officials and the Premier League is far from over.