Manchester City is set to re-submit a proposal for a new sponsorship deal with Etihad Airways after reaching a settlement with the Premier League in its dispute over the rules governing commercial deals.
The BBC said Manchester City have accepted the rules governing associated party transactions (APT) are valid and binding, with both parties agreeing to terminate legal proceedings.
The club had mounted a legal challenge against the Premier League, claiming new rules were “unlawful”.
“Neither the Premier League nor the club will be making any further comment about the matter,” a joint statement said.
Manchester City Football Club, also known as the Man City, is a professional football club based in Manchester, England (UK) that competes in the Premier League, the top flight of English football.
The City of Manchester Stadium, currently known as the Etihad Stadium for sponsorship reasons, and commonly shortened as The Etihad, is the home of the Premier League club Manchester City F.C. with a domestic football capacity of 53,600 making it the seventh-largest football stadium in England and the 11th-largest in the United Kingdom.
Last year, an independent arbitration panel found against aspects of the league’s APT regulations after a lawsuit instigated by the club.
The rules were formed by the Premier League to prevent clubs from profiting from commercial deals with companies linked to their owners that are deemed above “fair market value”.
In November 2024, a majority of top-flight clubs voted to approve amendments to the APTs, despite opposition from City.
Now it is no longer challenging the rules, Manchester City is set to re-submit a proposed new sponsorship deal with Etihad Airways.
It was one of two Abu-Dhabi-linked deals originally blocked by the Premier League in 2023 for not being fair market value, sparking City’s lawsuit.
City has given up its legal objections and embraced the current APT rules, meaning any new deal with Etihad or any associated party must satisfy those rules.
This will likely lead to more rigorous negotiation, perhaps more conservative terms, but also fewer surprises down the line.
For City, Etihad, and other clubs, proceeding with transparency and market-based valuations will now be essential. For the Premier League, the settlement reinforces its regulatory authority and the idea that its rules are enforceable.
The APT rules were introduced in December 2021 after the Saudi Arabian-led takeover of Newcastle earlier that year and were amended in March and November 2024.
The Premier League’s Associated Party Transaction rules are intended to ensure that any commercial or sponsorship deals between a club and any of its “associated parties” (i.e. companies or persons with significant ownership, control, or financial links to the club) are made at fair market value.
The goal is to stop clubs (especially with wealthy or state-affiliated owners) using inflated sponsorship deals with linked companies to boost revenue and gain unfair financial advantage.
The rules were successfully challenged by Manchester City last year.
A tribunal then ruled low-interest shareholder loans should not be excluded from the scope of the APTs, and that changes made to toughen up the regulations also breached competition law.
The Premier League and City attended a two-day hearing earlier this year to make submissions in relation to the impact of the original ruling.
They have now reached a settlement that will bring to a close a long-running legal battle that cost both sides millions of pounds in legal fees.
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