Manchester City and Premier League "terminate" legal dispute over sponsorship rules

Tuesday, September 9, 2025 - Manchester City and the Premier League have settled their dispute over commercial regulations, with the club agreeing that the current rules on ‘associated party transactions’ (APT) are “valid and binding.”

The dispute began in January when City launched arbitration proceedings challenging the APT rules, which are designed to ensure that deals between clubs and entities linked to their owners are made at fair market value. City’s challenge was understood to include criticism of how shareholder loans were treated under the regulations.

The APT rules were first introduced in December 2021 after the Saudi-led takeover of Newcastle United. City had previously won a legal challenge against an earlier version of the rules, with a tribunal ruling that they were unlawful on several grounds, including the exclusion of shareholder loans from fair market assessments.

Following consultations, the Premier League amended the rules, and 16 clubs voted in favor of the changes in November 2024. The updated rules now require shareholder loans to be assessed for fair market value, though this only applies to ongoing and future loans, not retrospectively.

City’s acceptance of the revised framework effectively closes the chapter on a dispute that could have significantly impacted the league’s financial integrity. Without such rules, owners could artificially inflate sponsorship values to increase revenue and gain an advantage under the league’s profitability and sustainability regulations.

Despite this resolution, City still await the outcome of an independent commission hearing into more than 100 charges of alleged breaches of financial rules — allegations the club strongly denies. The hearings concluded in December, with a decision yet to be delivered.