Manchester City and the Premier League have drawn a line under their lengthy legal dispute over the rules that govern club sponsorship deals.
In a joint statement, both sides confirmed that City have accepted the Premier League’s associated party transaction (APT) regulations as “valid and binding”. Neither party will be making further comment.
City had previously launched a legal challenge, arguing that the regulations were “unlawful”. The rules were originally introduced in December 2021, shortly after the Saudi-led takeover of Newcastle United, to stop clubs from inflating revenues by striking sponsorship deals with companies connected to their owners at prices above fair market value.
Although City successfully challenged parts of the framework last year, an arbitration panel ruled that the league could not exclude low-interest shareholder loans from its scope and that some of the tougher amendments breached competition law.
Despite that decision, the Premier League pressed ahead. In November 2024, a majority of clubs voted to strengthen the rules, with only City, Newcastle, Nottingham Forest and Aston Villa opposing the changes.
City criticised the process at the time, accusing the Premier League of being “misleading” and threatening further legal action if amendments were rushed through. The club argued that the proposed revisions would retroactively exempt shareholder loans—something the arbitration panel had already found to be unlawful.
Following months of back-and-forth and a two-day hearing earlier this year, the two sides have now agreed to settle. The resolution closes a drawn-out and costly legal battle, with both City and the Premier League having spent millions in legal fees.
The agreement comes as City still await the outcome of a separate and far more serious case: their landmark disciplinary hearing over more than 100 alleged breaches of financial regulations, charges which the club firmly denies.
