The Premier League and Manchester City are still awaiting the result of the hearing on City’s 115 charges for alleged breaches of the league’s financial rules. Notwithstanding, Premier League clubs are demanding for more clarity on the settlement of a legal dispute with Manchester City over the rules that govern commercial deals.
Reports say on Monday, the league informed clubs that Manchester City had agreed to the Associated Party Transactions (APT) regulations saying they are “valid and binding”. Both parties has accepted to terminate legal proceedings, and a statement was issued shortly afterwards.
Manchester City later filed a lawsuit against the APT rules which were meant to prevent clubs from profiting off commercial deals with companies linked to their owners and were considered above “fair market value,” claiming that the rules were “unlawful”.
According to sources from several clubs, they had not been given any details with regards to the settlement and what it entails. Some suggested that the league executives should be asked to clarify the assurances or concessions that had been granted to Manchester City at its next shareholders meeting this month.
Most clubs are relieved that rules which they feel are essential to preserve competitive balance and fairness are no longer in jeopardy while some are known to be perturbed by reports that City are set to complete a lucrative new sponsorship deal with airline Etihad Airways, one of two Abu Dhabi-linked deals originally blocked in 2023 for not being fair market value which incited City’s lawsuit.
In spite of the fact that City has been given assurances that the deal will be approved, it will still be subjected to a fair market value assessment by the Premier League board. Officials insist that clubs with state connections – such as City and Newcastle United – will not find it easier to secure approval for commercial deals with companies linked to their owners.
The APT rules which were introduced in December 2021 after the Saudi Arabian-led takeover of Newcastle were successfully challenged by Manchester City in 2024. It contained an independent tribunal ruling that low-interest shareholder loans should not be excluded from the scope of the APTs, and that changes made to toughen up the regulations also breached competition law.
Against Manchester City’s wishes, the league amended the rules accordingly. In February, the City launched a fresh legal challenge, asserting that the regulations were “unlawful and void”, and triggering a new arbitration.
On announcement of the settlement, Premier league’s. Chief Executive, Richard Masters and Chairman, Alison Brittain had offered to speak to clubs if they had any questions regarding the settlement.
Anyhow, Premier league officials insist the nature of the agreement demands that a great deal of the detail needs to remain confidential.
What this means for Manchester City
While there is no suggestion from either side that the agreement will have any serious impact on the higher-profile, ongoing saga of the Premier League’s disciplinary case against City for 115 alleged breaches of its financial rules, Sports Lawyer, Richard Cramer has expressed satisfaction in the fact that the agreement favoured all parties involved,
“The compromise means neither party is a winner or a loser, but ultimately one would imagine Manchester City have come out with a good result in the sense that they can probably now push forward and close off some sponsorship deals at a higher value than perhaps the Premier League would previously have allowed,” he said.
“It does mean there is a likelihood Manchester City will be able to spend more money. The settlement probably means a better working relationship and maybe this is an indication that the Premier League and the other clubs have indicated enough is enough – it’s not a good optic for the clubs to be fighting and at loggerheads with the governing body.
“One of the biggest concerns for the Premier League is the vast expense on legal fees in relation to these ongoing arbitrations. The funding of these disputes has got completely out of control and a big drain on resources from both a management point of view and of course eating into cash reserves. Manchester City have untold wealth behind them to continue with these disputes, but even they may have reached the point of deciding that it’s not good for the sport,” he added.
