Manchester City and the Premier League have reached a settlement to “terminate” a legal dispute over the league’s Associated Party Transaction (APT) Rules after the club accepted that the existing rules are “valid and binding.”
City and the Premier League released statements at the same time Monday saying they have “agreed to terminate the proceedings.”
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The settlement is unrelated to the hearing into the 115 charges issued against the Abu Dhabi-owned club by the Premier League for alleged breaching of financial regulations.
A hearing into the 115 charges, which City deny, was overseen by a three-person panel between September and December 2024.
A verdict has yet to be reached. In a separate case, City had mounted a legal challenge against the Premier League in February, claiming that amended APT rules were unlawful following a 16-4 vote among the 20 Premier League clubs last November in favour of updating the rules to allow for greater scrutiny clubs receiving loans from shareholders.
The APT rules are designed to prevent clubs from securing sponsorship deals from associated parties that are not deemed to be of fair market value.
But despite a lengthy battle, both City and the Premier League have now dropped the legal action over the most recent amendment of the APT rules.
In a statement, City 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 the parties 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 return to Premier League action on Sunday when they face Manchester United at the Etihad Stadium with Pep Guardiola’s team aiming to overcome their worst start to a season since 2005-06 after losing two of their three opening games.
