Premier League clubs are demanding further clarity regarding the recent settlement of a legal dispute between the league and Manchester City concerning the regulations surrounding associated party transactions (APT). BBC Sport has been informed that during a meeting on Monday, club representatives were told that Manchester City has accepted the validity and binding nature of the APT regulations, leading both parties to agree to terminate ongoing legal proceedings. A formal statement is expected to be issued shortly.
The APT rules were implemented by the Premier League to prevent clubs from profiting from commercial deals with companies linked to their owners if such deals are considered to exceed “fair market value.” Manchester City had previously launched a lawsuit against the league, claiming that these regulations were “unlawful.”
Sources from various rival clubs have indicated that no specific details regarding the settlement have been shared, leaving many questions unanswered. There are suggestions that the league may need to clarify any assurances or concessions granted to City during the upcoming shareholders meeting this month.
One senior executive from a Premier League club, who wished to remain anonymous, stated:
“It’s hard to say anything because we have no idea of the details of the settlement or any implications stemming from it.”
While many clubs are relieved that regulations deemed essential for maintaining competitive balance are no longer under threat, there are concerns regarding reports that Manchester City is poised to finalise a lucrative new sponsorship deal with Etihad Airways. This deal was previously one of two Abu Dhabi-linked agreements blocked by the Premier League in 2023 due to concerns over fair market value and contributed to City’s legal action.
Despite suggestions that assurances may have been made to City regarding the deal’s approval, BBC Sport understands that it will still be subject to a fair market value assessment by the Premier League board. Officials have reiterated that clubs with state affiliations, such as City and Newcastle United, will not find it easier to secure approval for commercial deals involving companies linked to their owners.
The APT regulations were established in December 2021 following the Saudi Arabian-led takeover of Newcastle United. In 2024, these rules were successfully challenged by Manchester City, with an independent tribunal ruling that low-interest shareholder loans should be included within the scope of the APTs. Subsequent changes intended to strengthen the regulations were deemed to breach competition law. In February, City launched a further legal challenge, terming the regulations “unlawful and void,” which has led to ongoing arbitration.
