9th September 2025
September 9 – Manchester City and the Premier League have called a truce in their dispute over the Premier League’s Associated Party Transaction (APT) rules, with both sides agreeing to stop legal proceedings.
Under the agreement City have accepted the rules governing associated party transactions (APT) are valid and binding.
This case theoretically has no bearing or influence on the Premier League’s disciplinary case against City for more than 100 alleged breaches of its financial rules. A verdict to be issued by an independent commission is supposedly imminent but it has been a long wait – the completed its hearing nine months ago. City deny any wrongdoing in a case that has hung over the Premier League’s ability to implement robust financial sustainability and fair play rules.
The Premier League’s APT rules cover commercial deals entered into between clubs and companies linked to their owners.
Sponsorships and partnerships must be of “fair market value”, with the aim being to prevent the richest and most commercially influential club owners from inflating deals via related parties and spending more on players. For Manchester City it is particularly relevant dues to the large number of UAE-based sponsorships.
At the heart of the rules is a desire to ensure the Premier League remains competitive.
Last year Man City challenged the rules that were introduced in December 2021. A tribunal ruled in their favour saying that they were a breach of UK competition law, but also judging that low-interest shareholder loans should not be excluded from APT regulation. It was a partial win for both sides.
The Premier League changed the wording of the rules which led to a second court filing in February by City who claimed that the new APT rules voted in by clubs in November last year, were invalid as they were anti-competitive and breached public law principles.
A hearing that was scheduled to be held next month has been cancelled by the new peace accord which will also see a significant reduction in legal bills in a challenge that has already been punitively expensive for the Premier League.
In a statement, 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, 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.”
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