Premier League clubs are seeking greater transparency following the recent resolution of a legal conflict between the league and Manchester City concerning the rules governing associated party transactions (APT). According to sources, during a meeting held on Monday, representatives from various clubs were informed that Manchester City has acknowledged the legitimacy and enforceability of the APT regulations. Consequently, both parties have agreed to discontinue the ongoing litigation. An official announcement is anticipated soon.
The Premier League introduced the APT rules to curb clubs from gaining unfair advantages through commercial agreements with entities connected to their owners, particularly when such deals surpass what is considered “fair market value.” Manchester City had previously contested these regulations in court, arguing that they were “unlawful.”
Insiders from rival clubs have revealed that the settlement’s specifics remain undisclosed, leaving many uncertainties unresolved. It is expected that the league will need to clarify any commitments or concessions made to Manchester City during the forthcoming shareholders’ meeting scheduled for later this month.
A senior executive from a Premier League club, speaking anonymously, commented:
“Without access to the settlement details, it’s difficult to assess the full impact or implications of this agreement.”
While numerous clubs welcome the preservation of these crucial rules designed to ensure a level playing field, concerns persist regarding reports that Manchester City is on the verge of securing a highly profitable new sponsorship with Etihad Airways. This particular deal was among two Abu Dhabi-linked agreements blocked by the Premier League in 2023 over fair market value concerns, which partly triggered City’s legal challenge.
Although there are rumors that Manchester City may have received some form of assurance about the sponsorship’s approval, sources confirm that the deal will still undergo a rigorous fair market value evaluation by the Premier League board. Officials have emphasized that clubs with state-linked ownership, including City and Newcastle United, will not receive preferential treatment when seeking approval for commercial arrangements involving owner-affiliated companies.
The APT framework was introduced in December 2021 following the Saudi-led acquisition of Newcastle United. In 2024, Manchester City successfully contested aspects of these rules, with an independent tribunal ruling that low-interest shareholder loans fall under the APT regulations. Attempts to tighten the rules afterward were found to violate competition laws. In February, City initiated another legal challenge, labeling the regulations as “unlawful and void,” which has since resulted in ongoing arbitration proceedings.
