England’s top football league and Manchester City Football Club said Monday they have resolved their arbitration dispute concerning rules that govern transactions between clubs and businesses linked to club owners.

In a joint statement, the Premier League and Manchester City confirmed they had reached a settlement over the league’s associated party transactions (APT) rules, the most recent version of which was adopted in November 2023. As part of the agreement, the club acknowledged that the APT rules are “valid and binding.”

City’s Challenge and Allegations

Manchester City had previously alleged that the APT regulations were anti-competitive and inconsistent with principles of public law. The rules regulate commercial transactions between clubs and related-party entities to ensure that all deals are struck at fair market value, thereby preventing inflated sponsorships or financial manipulations.

The dispute stemmed from the league’s conclusion in 2023 that two of City’s sponsorship agreements — one with Abu Dhabi Bank and another with the Etihad Aviation Group — did not reflect fair value. City challenged the league’s decision, arguing that the APT framework itself was unlawful.

Settlement Terms

While confirming the settlement, both parties emphasized that they would not provide further comment.

“This settlement brings an end to the dispute between the parties regarding the APT rules,” the statement said. “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.”

The resolution formally ends the arbitration proceedings and closes one of the more contentious regulatory battles in English football.

Background of the APT Rules

The Premier League first introduced its APT rules in December 2021, shortly after the Saudi Public Investment Fund led a takeover of Newcastle United FC. The measures were designed to strengthen existing financial safeguards and address the risk of artificially inflated sponsorship deals being used to distort club finances.

The rules expanded on financial sustainability measures adopted in 2009, when Portsmouth FC entered insolvency. The intent was to protect clubs’ long-term profitability and the integrity of the competition by curbing potential abuses.

The league has maintained that APT oversight is essential for preserving competitive balance and ensuring that financial fair play principles remain enforceable across all clubs.

Counsel and Case Details

Details of the legal counsel advising the parties and the case reference for the arbitration were not immediately available Monday.