Manchester City and the Premier League have officially resolved their long-standing legal confrontation over the league’s Associated Party Transaction (APT) rules. The settlement ends the arbitration launched by City earlier this year and marks a rare moment of resolution between the institution and one of its most influential clubs.
In ruling terms: Manchester City has accepted that the current APT rules are valid and binding, and both parties have agreed to terminate all ongoing legal proceedings related to the dispute. The arbitration specifically addressed amendments made to the APT rules in November, which the Premier League implemented after a tribunal in February found earlier versions of these rules to be unlawful.
Background and Timeline
- Original APT Rules (2021–2024): The Premier League introduced APT rules to ensure commercial deals with companies linked to club owners reflect fair market value, preventing artificially inflated sponsorships.
- First Legal Blow (February 2025): A tribunal ruled that the APT framework in force between December 2021 and November 2024 was void and unenforceable, declaring key elements unlawful and inseparable from the broader rules.
- Rule Revisions & Continued Dispute: Following this judgment, the Premier League amended the rules via a club vote in November 2024. Manchester City then challenged those new amendments through further arbitration in early 2025.
The Settlement Agreement
On September 8, 2025, both parties announced that they had settled. Manchester City formally accepted that the current APT rules—as amended—are valid and enforceable, and the arbitration has been terminated. Both parties also confirmed in a joint statement that they will refrain from further comment on the matter.
This resolution paves the way for Manchester City to finalize sponsorship arrangements that were previously blocked—most notably with Etihad Airways.However, rival clubs express concern that City—and similarly structured clubs—could now face fewer obstacles when negotiating high-value sponsorship deals, potentially widening financial disparities across the Premier League.
Broader Context
It’s important to note that this settlement does not affect the ongoing separate disciplinary case. Manchester City still faces over 100 charges related to alleged breaches of Premier League financial rules; the arbitration and settlement strictly relate to the APT rules dispute.
Why It Matters
This settlement is significant not just as a legal rapprochement, but as a precedent for how regulatory friction between a dominant club and its governing body can be resolved. It reaffirms the Premier League’s rule-making power while averting a destabilizing legal battle that could have triggered wider reforms or challenges to league governance.
The deal also reflects a compromise: Manchester City secures the commercial flexibility it sought, while the Premier League maintains regulatory authority—albeit amid criticism over fairness and balance.
Still, critics warn this could tilt competitive balance—enabling wealthier clubs backed by owners with deep pockets to skirt scrutiny through APT deals deemed FAIR by the amended rules.
In short: the dispute is settled, but the implications for financial equity in English football continue to burn brightly.
