By Martin Graham
Manchester City and the Premier League have reached a resolution in their conflict regarding the regulations that govern sponsorship and commercial arrangements.
The club has accepted that the guidelines surrounding associated party transactions (APT) are legitimate and enforceable. As part of the settlement, both sides agreed to end ongoing legal action.
City had previously argued that the regulations were “unlawful,” but the matter will now not proceed further in court. In a joint statement, the two parties confirmed that no additional remarks would be made.
Background to rule changes and challenges
The APT framework was first introduced in December 2021, shortly after Newcastle United’s Saudi-led takeover. Adjustments to the policy were later approved in March and November 2024.
Manchester City successfully challenged elements of the rules last year. An arbitration panel determined that low-interest shareholder loans could not be excluded from the scope of the APTs and that some of the league’s efforts to strengthen the regulations conflicted with competition law.
City criticized the league’s interpretation following that ruling, warning against rushed revisions. They claimed the proposals included retroactive exemptions for shareholder loans, which the tribunal had already judged to be unlawful.
Despite objections from City, as well as Newcastle, Nottingham Forest, and Aston Villa, Premier League clubs voted in November 2024 to back amendments to the framework.
Wider context and disciplinary hearing
This settlement ends a prolonged legal conflict that has cost both the club and the league millions in fees. Earlier this year, both sides had presented arguments in a two-day session to address the implications of the previous ruling.
City are still waiting for the conclusion of a separate, high-profile disciplinary case. The club faces more than 100 allegations of breaking financial regulations, which they deny.
