Manchester City and the Premier League have settled on the league’s Associated Party Transactions rules, ending the club’s legal challenge and closing ongoing proceedings. As part of the agreement, City have accepted that the current APT rules are valid and binding. Both sides say they will make no further comment.
APT rules govern commercial deals between a club and companies linked to its owners, with an emphasis on ensuring that sponsorship and other agreements reflect fair market value. They were tightened and rewritten after a vote of clubs in November 2024, replacing earlier provisions that City had contested. The settlement confirms that those updated rules remain in force.
The City launched arbitration against the Premier League this year, following a long-running dispute over how the rules should be applied to their commercial partnerships. In February, an independent tribunal ruled that elements of the league’s earlier sponsorship framework (used between 2021 and 2024) were unlawful or unenforceable. The league said that the decision did not affect the valid operation of the new rules adopted in late 2024. Monday’s settlement ends the immediate legal wrangle by recognising the current regime.
Practically, the agreement reduces uncertainty around City’s ability to finalise linked party deals that pass a fair value test, while preserving the Premier League’s oversight mechanism. Some rivals are relieved the framework survived, but remain wary that state-backed clubs could now find it easier to justify premium pricing on bespoke partnerships, potentially widening financial gaps.
This settlement does not touch the Premier League’s separate case against City over more than 100 alleged breaches of financial rules, which the club deny. A judgment in that case has not yet been published.
After months of litigation, both league and club have opted for a rules-based peace that keeps the fair value principle intact while removing immediate friction over its legality. The focus now shifts to how consistently the system is applied, the transparency of valuations, and whether enforcement convinces sceptical competitors that the playing field remains credible.
