Manchester City and the Premier League have officially settled their dispute over the Associated Party Transaction (APT) rules, bringing an end to a legal battle that had drawn significant attention across English football.
The APT rules, first introduced in December 2021 after the Saudi-backed takeover of Newcastle United, are designed to ensure that any commercial agreements between clubs and entities linked to their ownership are completed at fair market value.
These regulations play a crucial role in preventing inflated sponsorship or partnership deals that could give clubs an unfair financial advantage under the Premier League’s Profitability and Sustainability Rules (PSR).
City had previously challenged the APT rules, with a tribunal ruling in 2023 that certain parts of the regulations, particularly the exclusion of shareholder loans from fair market value assessments were unlawful. In response, the Premier League revised the rules, which were approved by 16 clubs last November.
Settlement Reached
On Monday, Manchester City confirmed that they have now accepted the amended rules as “valid and binding”, formally ending their legal proceedings against the Premier League.
In a joint statement, City and the Premier League said:
“The Premier League and Manchester City FC have reached a settlement in relation to the arbitration commenced by the club earlier this year concerning the Premier League’s Associated Party Transaction (APT) Rules. As a result, the parties have agreed to terminate the proceedings.”
They further added that neither party would be making any additional comments on the matter.
Why This Matters
Without these regulations, clubs with wealthy owners could inflate the value of commercial deals with related companies, artificially boosting revenue streams and giving themselves more financial freedom to spend on transfers and wages.
The settlement means the rules remain in place to safeguard the league’s competitive balance, with fair market value assessments now applying to both ongoing and future shareholder loans.
However, the rules do not apply retrospectively, though a grace period has been allowed for converting past loans into equity.
Ongoing Financial Case
While this dispute is now resolved, Manchester City still face the outcome of an independent commission hearing regarding over 100 alleged breaches of the Premier League’s financial rules.
That case, which ran between September and December 2024, remains under review. City have strenuously denied all allegations.
For now, the settlement provides much-needed clarity on the Premier League’s commercial rules and ends one of the most contentious legal battles in recent years.
