Manchester City have confirmed that they have reached a settlement agreement with the Premier League in relation to their dispute over the rules that govern commercial deals.
Back in October last year, both Man City and the Premier League claimed respective victories in their fight over Associated Party Transaction rules (APT), after an arbitration panel found that some elements of those rules were unlawful.
APT rules were formed by the Premier League to make sure that any deals that a club does with a company connected to its own owners is ‘fair market value’, with the rules ensuring that any deals agreed have not been inflated, which could give teams more to spend under current financial rules.
Man City claimed at the time that they had been unfairly blocked from striking lucrative sponsorship deals with Etihad Aviation Group and First Abu Dhabi Bank, while they also deemed the rules to be part of "a tyranny of the majority".
However, in November of last year, Pep Guardiola’s side **were defeated**when 16 of the 20 Premier League clubs voted in favour of the changes to APT rules, which were prompted by the Citizens' first legal challenge last June.
In response, Man City launched a fresh legal challenge against the Premier League over APT rules earlier this year and the case was due to be heard later in 2025.
General view of Manchester City's crest at the Etihad Stadium on April 11, 2023
Man City accept rewritten ATP rules are “valid and binding”
However, now that both parties have reached an agreement over a settlement, the intended hearing has been shelved and the Premier League's rewritten APT rules will remain in place.
A statement from Man City released on their official website read: “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 and as a result the parties have agreed to terminate the proceedings.
“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.
“It has been agreed that neither the Premier League nor the club will be making any further comment about the matter.”
This legal matter is separate from the one covering the well-documented 115 charges levelled against the Citizens by the Premier League for alleged financial breaches, which is understood to have been increased to 130 alleged breaches.
Manchester City manager Pep Guardiola on April 6, 2025
Man City still awaiting verdict from 'sport's trial of the century'
In February 2023, Man City were charged by the Premier League with breaking financial rules between 2009 and 2018 following a four-year investigation.
Man City are alleged to have failed to provide accurate financial information relating to sponsorship income, revenue and operating costs, as well as full details of players' wages over a six-season period and the earnings of former manager Roberto Mancini during his time at the club.
The Citizens, who have emphatically denied the charges against them, have also been accused by the Premier League of failing to comply with UEFA's Financial Fair Play rules during a five-year period - before Guardiola's arrival in 2016 - and are said to have not fully co-operated with the Premier League's investigation.
The hearing into Man City's 130 charges - dubbed the 'the sport's trial of the century' - began in September last year and the 12-week trial concluded in December, with the independent commission now considering all the evidence before making their final decision.
It was initially anticipated that a verdict would be made public in the spring of 2025, and it was later suggested that a verdict was unlikely to be released before the summer.
Premier League chief executive Richard Masters stated last month that England’s top division has no influence over the decision or timings of the case surrounding Man City's multiple charges.
The lengthy delay is thought to be due to the vast number of charges against Man City, as well as the complexities involved, the amount of evidence heard and challenged, and the scrutiny around the high-profile case between the Premier League and the 10-time English top-flight champions.
According to The Independent, Man City could discover the outcome of their case in late September or early October.
Sanctions in the event of a guilty verdict could range from heavy fines to a significant points deductions which could lead to relegation from the Premier League.
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