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Manchester City settle with Premier League and acknowledge validity of sponsorship rules

September 8, 2025 | Reported By : Arinze
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Manchester City and the Premier League have reached a settlement in their dispute over rules restricting clubs from signing sponsorship deals with companies linked to their owners.

The disagreement centred on the so-called associated party transaction (APT) rules, which had been viewed as a potential challenge to the wider Premier League regulatory framework. Both sides have now drawn a line under the matter, with City accepting the legitimacy of the APT rules in their current form.

In a joint statement issued on Monday afternoon, the parties 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 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.”

City had previously won an initial arbitration ruling in October, when a panel concluded that elements of the rules were discriminatory. Specifically, shareholder loans to their own clubs should have been captured under APT regulations, and the panel also criticised the league’s process for providing clubs with guidance on “fair market value” in sponsorship agreements.

Following those findings, the Premier League amended the rules, arguing that the issues had been addressed and that its framework was fit for purpose. City, however, disputed the revisions and launched a fresh arbitration process earlier this year. It is this second case that has now been resolved through settlement.

Despite this outcome, both parties remain entangled in the ongoing and highly secretive disciplinary proceedings, in which Manchester City face more than 130 charges relating to alleged breaches of Premier League rules.