Manchester City settle with Premier League and accept sponsorship rules are valid

Manchester City and the Premier League have settled their dispute over rules that limit the ability of top-flight clubs to sign sponsorship deals with companies related to their ownership.

The fight over so-called associated party transaction rules had been seen as a potential challenge to the entire Premier League rulebook, but both parties have now stepped back from the brink, with City agreeing to accept the legitimacy of the APT rules as they stand.

“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 have agreed to terminate the proceedings,” the parties said in a joint statement on Monday afternoon.

“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.”

City claimed victory in an initial battle over APT in October, after an arbitration panel found that certain aspects of the rules which then stood were discriminatory. Loans made by shareholders to their own club should have been included within APT rules, the panel adjudged, while there were also problems with the way in which clubs were given information on what might be “fair market value” in any given deal.

After making adjustments to accommodate the panel’s ruling, the Premier League argued that any problems over APT had been resolved and its rulebook fit for purpose. City challenged the league’s adjustments, however, and began a new process of arbitration this year. It is this second process which has now been resolved. Both parties, however, remain involved in the lengthy and secretive disciplinary process in which the club have been hit with more than 130 charges of breaking the Premier League’s rulebook.