In a significant development that ends months of legal uncertainty, Man City and the Premier League have officially reached a settlement in their high-profile dispute over Associated Party Transaction (APT) rules. The agreement, announced on September 8, 2025, sees the Manchester club accept that the current APT regulations are “valid and binding,” bringing an end to a contentious legal battle that threatened to reshape English football’s regulatory landscape.
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The Settlement: A Mutual Resolution
The joint statement released by both parties confirmed that they have “agreed to terminate the proceedings” that began when Man City launched arbitration proceedings on January 20, 2025. This settlement avoids what would have been a costly and potentially damaging October tribunal hearing, allowing both organizations to move forward without further legal expenses or public scrutiny.
“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,” the statement read, with both parties agreeing to make no further public comments on the matter.
Key Timeline of APT Dispute
Date | Event |
---|---|
December 2021 | APT rules first introduced by Premier League |
2023 | Man City’s Etihad Airways deal blocked by Premier League |
January 20, 2025 | Man City launches arbitration proceedings |
March 2024 | Premier League amends APT rules |
September 2024 | Independent tribunal finds some APT elements unlawful |
February 2025 | Full tribunal reasons declare 2021-2024 rules “void” |
September 8, 2025 | Settlement agreement reached |
Understanding APT Rules: The Financial Fair Play Framework
Associated Party Transaction rules represent one of the Premier League‘s most sophisticated regulatory mechanisms, designed to maintain competitive balance and financial integrity across English football’s top division. These rules were first introduced in December 2021 and amended in March 2024, with the aim of safeguarding the financial stability, integrity, and competitive balance of the League.
The regulations ensure that any commercial deal between a club and entities linked to their ownership structure must be conducted at Fair Market Value (FMV). Associated parties include those “directly or indirectly controlled, jointly controlled, or materially influenced by the same government, public or state-funded body or by the same party“.
What Constitutes an Associated Party Transaction
Transaction Type | Examples | Assessment Criteria |
---|---|---|
Sponsorship Deals | Stadium naming rights, shirt sponsorships | Must reflect market rates for similar venues/clubs |
Commercial Services | Consulting, marketing, catering services | Benchmarked against industry standards |
Player Transfers | Purchases from sister clubs | Transfer fees must align with player valuations |
Shareholder Loans | Owner financing to clubs | Interest rates must match commercial lending terms |
Man City’s Challenge: From Victory to Settlement
Man City‘s legal challenge began in earnest after the Premier League blocked proposed sponsorship deals with Etihad Airways and First Abu Dhabi Bank in 2023. Manchester City wanted to do a new sponsorship deal with Etihad Airways and First Abu Dhabi Bank. They submitted these proposed deals to the Premier League to make sure that they complied with the APT rules and the deals were blocked by the league.
The club’s legal team argued that the APT rules were discriminatory and unlawful, particularly criticizing how the Premier League treated shareholder loans differently from other associated party transactions. Their challenge achieved initial success when an independent panel found that some key elements of the APT rules were unlawful and later declared that the 2021 to 2024 APT rules were void and unenforceable.
Despite these apparent victories, the settlement sees Man City accepting the current regulatory framework, suggesting that the club has achieved sufficient modifications to the rules through the legal process to make continued litigation unnecessary.
Premier League’s Strategic Response
The Premier League demonstrated remarkable adaptability throughout this dispute, quickly responding to tribunal findings by amending problematic aspects of the APT framework. At a Premier League Shareholders’ meeting today, clubs approved changes to the League’s Associated Party Transaction (APT) rules. The amendments to the rules address the findings of an Arbitration Tribunal following a legal challenge by Manchester City to the APT system earlier this year.
The league’s strategic approach involved conducting detailed consultations with member clubs and securing approval for rule modifications that addressed the tribunal’s concerns while maintaining the essential structure of financial regulation. This approach appears to have satisfied Man City‘s concerns sufficiently to reach a settlement.
Impact on Other Premier League Clubs
Club Category | Potential Impact | Strategic Considerations |
---|---|---|
State-owned clubs | Greater clarity on APT compliance | Newcastle United, potential future acquisitions |
Clubs with owner loans | New shareholder loan assessments required | Multiple clubs affected by loan provisions |
Traditional “Big Six” | Maintained competitive balance through regulation | Support for existing APT framework |
The Broader Context: Separate from the 115 Charges
Crucially, this APT settlement remains entirely separate from the ongoing investigation into Man City‘s alleged 115 breaches of Premier League financial regulations. This legal action is separate to the one covering more than 100 charges against City for alleged breaches of Premier League financial rules. The club deny the charges. It remains unknown when a judgement on that case will be announced.
The 115 charges case, which underwent hearings between September and December 2024, addresses alleged historical breaches of financial fair play rules spanning multiple seasons. The resolution of the APT dispute does not influence or prejudice the outcome of that separate proceeding, which continues to await judgment from an independent commission.
Commercial Implications: The Etihad Airways Factor
One significant beneficiary of this settlement appears to be Man City‘s commercial relationship with Etihad Airways. This agreement will pave the way for the club to finalise a lucrative sponsorship agreement with Etihad Airways, potentially worth up to £1 billion according to some reports.
The deal, which combines shirt sponsorship with stadium naming rights, represents one of the most valuable commercial partnerships in football history. The previous Etihad agreement, signed in 2011, was worth £400 million over ten years, making this new arrangement a substantial increase that reflects both Man City‘s enhanced global profile and the inflation in football commercial values.
Regulatory Evolution in Modern Football
This settlement represents a mature approach to sports regulation, demonstrating how legal challenges can ultimately strengthen regulatory frameworks rather than undermine them. The Premier League‘s willingness to adapt its rules in response to legitimate legal concerns, combined with Man City‘s acceptance of the modified framework, suggests a evolution toward more sophisticated and legally robust financial governance in football.
The APT rules serve a vital function in maintaining competitive balance, preventing clubs from gaining unfair advantages through artificially inflated commercial deals with related parties. By settling this dispute, both the Premier League and Man City have prioritized the broader health of English football over individual institutional interests.
Looking Forward: A New Equilibrium
The resolution of this dispute creates a new equilibrium in Premier League governance, where financial regulations have been tested by legal challenge and emerged strengthened. Man City‘s acceptance of the current APT rules provides regulatory certainty for all member clubs while ensuring that commercial innovation within legal boundaries remains possible.
This settlement also demonstrates the effectiveness of the Premier League‘s dispute resolution mechanisms, showing that even the most contentious regulatory disagreements can be resolved through negotiation and compromise rather than prolonged litigation.
For Man City, the settlement allows the club to focus on football matters without the distraction of ongoing legal proceedings, while still achieving modifications to regulations that were of concern. The club can now finalize its commercial arrangements within the accepted regulatory framework and concentrate on maintaining its position as one of world football’s leading institutions.
The Premier League, meanwhile, emerges with its regulatory authority intact and potentially strengthened, having demonstrated both the flexibility to adapt rules when legally necessary and the resolve to maintain essential competitive safeguards. This balanced approach to regulation and enforcement will likely serve as a model for football governance globally.
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FAQs
What are Associated Party Transaction (APT) rules?
APT rules ensure commercial deals between Premier League clubs and related entities are conducted at fair market value. Introduced in December 2021, they prevent clubs from inflating revenues through artificially high-value deals with connected parties.
How does this settlement affect Man City’s 115 charges case?
The APT settlement is completely separate from the 115 charges case and has no impact on that proceeding. The 115 charges case continues to await judgment from an independent commission.
What does this mean for Man City’s Etihad Airways deal?
The settlement clears the path for Man City to finalize their sponsorship renewal with Etihad Airways, potentially worth up to £1 billion, after it was previously blocked by the Premier League.
Why did Man City accept the APT rules after challenging them?
The Premier League amended the problematic elements that Man City challenged. The current rules address Man City’s main concerns sufficiently to make continued litigation unnecessary.
How does this impact other Premier League clubs?
The settlement provides clarity for all clubs regarding APT compliance, particularly affecting clubs with state ownership like Newcastle United, while shareholder loans are now included in APT assessments.