Manchester City, Premier League Reach Settlement in Commercial Rules Dispute

MANCHESTER, England – Manchester City and the Premier League have reached a settlement in their legal dispute over the league’s rules governing commercial deals with entities linked to club ownership, both parties confirmed on Monday.

City have withdrawn their arbitration challenge and accepted that the current Associated Party Transaction (APT) rules are “valid and binding.” The club had initiated proceedings in January, contesting aspects of the regulations designed to ensure commercial deals between clubs and owner-linked companies are conducted at fair market value.

The resolution ends a prolonged standoff that began when City successfully challenged the original APT rules last year, leading to amendments approved by 16 clubs in a vote last November. The updated regulations now include provisions for assessing shareholder loans at fair market value, though these apply only to ongoing and future transactions, not retrospectively.

The settlement averts a scenario that could have significantly weakened the league’s financial governance framework. Without robust APT rules, critics argued clubs could inflate commercial revenue through overvalued deals with owner-linked entities, circumventing Profitability and Sustainability Regulations (PSR) and gaining unfair spending advantages.

This resolution separates from the ongoing independent commission hearing into the Premier League’s 115 charges against City for alleged historical financial rule breaches, which the club denies. That proceeding, which concluded hearings in December, remains pending a verdict.