Manchester City and Premier League Settle Sponsorship Dispute

Etihad Stadium

Manchester City and Premier League settle sponsorship rules dispute, accepting APT rules as valid and binding. Learn more about the implications for the club and the league.

“This settlement brings an end to the dispute between the parties regarding the APT Rules...”

Manchester City and the Premier League have put an end to their dispute over sponsorship rules, with City accepting the Associated Party Transactions (APT) rules as “valid and binding.” This settlement brings finality to the arbitration proceedings initiated by City earlier this year. The APT rules, designed to ensure fair market value in commercial deals between clubs and entities linked to their ownership, were the focal point of the dispute.

The Premier League's APT rules aim to prevent artificially inflated sponsorship deals that could undermine the league's financial regulations. City had challenged these rules, arguing they were unfairly applied, particularly regarding their sponsorship deal with Etihad Airways. The settlement allows City to move forward with greater confidence in their compliance with Premier League regulations, potentially paving the way for smoother commercial operations.

Key Aspects of the Settlement:

• Termination of Proceedings: Both parties have agreed to terminate legal proceedings related to the dispute.
• Acceptance of APT Rules: Manchester City accepts the current APT rules as valid and binding.
• No Further Comment: Neither side will make further public comments on the matter.
• Separate Financial Charges: The settlement does not impact the ongoing case regarding over 100 charges of alleged financial breaches, which City denies.

Club statement

— Manchester City (@ManCity) September 8, 2025

The settlement provides stability for Manchester City, allowing them to focus on their on-field performance and strategic objectives. However, the club still faces uncertainty regarding the outcome of the alleged financial breaches case.

“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,” City said in a statement.

The Premier League's Associated Party Transaction (APT) rules have been at the center of a dispute between Manchester City and the league. An independent tribunal ruled that certain aspects of the APT rules, specifically the exclusion of shareholder loans, were unlawful under UK competition law. Despite this, the Premier League maintains that the ruling doesn't impact the overall validity of the APT system.

The APT rules aim to prevent clubs from gaining unfair financial advantages through commercial deals or cost reductions linked to associated parties. Manchester City challenged the rules, arguing they were discriminatory and breached competition law. The tribunal largely rejected City's claims but agreed that shareholder loans should be included in the APT rules.

Key Points of the Ruling:

• Unlawful Aspects: The exclusion of shareholder loans from APT rules was deemed unlawful.
• APT System Remains: The Premier League will continue to operate the APT system with minor revisions.
• Tribunal's Findings: The APT rules are considered necessary for the league's financial oversight and Profitability and Sustainability Rules (PSR).

The Premier League has proposed amendments to the APT rules, including changes to the definition of “fair market value” and the inclusion of shareholder loans. These amendments aim to ensure the rules comply with competition law while maintaining competitive balance among clubs.