Premier League clubs are pushing for more clarity after Manchester City and the league abruptly ended their legal dispute over commercial deal regulations.
On Monday, clubs were told that City had accepted the Associated Party Transactions (APT) rules as “valid and binding,” and that both sides had agreed to terminate ongoing proceedings. A joint statement was released shortly afterwards.
APT rules, introduced in December 2021 following the Saudi-led takeover of Newcastle United, were designed to stop clubs from inflating sponsorship values with companies linked to their owners. City had previously branded the regulations “unlawful” and launched legal action earlier this year.
While many clubs welcome the stability of keeping the rules in place, rival executives say they have not been informed of the details of the settlement or whether any concessions were granted to City. Some are expected to demand clarification at the next Premier League shareholders’ meeting later this month.
One senior club executive admitted: “It’s hard to say anything because we have no idea of the details of the settlement or any implications from it.”
The uncertainty comes as City are reportedly close to finalising a lucrative new sponsorship deal with Etihad Airways, one of two Abu Dhabi-linked agreements originally blocked by the Premier League in 2023 for not meeting fair market value standards. Despite speculation, league officials insist the deal would still undergo a fair market value assessment, and stress that no special treatment will be given to state-owned clubs such as City or Newcastle.
The settlement is seen as a compromise. Sports lawyer Richard Cramer suggested City may now be in a stronger position to push through higher-value sponsorships, but added that both sides likely wanted to avoid further costly legal battles.
“It probably means a better working relationship,” Cramer explained. “The vast expense on legal fees has become a major drain on resources for the league, while City – despite their financial power – may also have decided it wasn’t good for the sport.”
League chief executive Richard Masters and chair Alison Brittain have offered to speak to clubs who have questions, but officials say the nature of the agreement means certain details must remain confidential.
Importantly, the settlement has no bearing on the separate case involving Manchester City’s 115 alleged breaches of Premier League financial rules. That disciplinary process, which City strongly deny, remains ongoing.
