The Associated Party Transaction (APT) Rules, first introduced in December 2021 following the Saudi-led takeover of Newcastle United, reportedly aim to safeguard the financial integrity and competitive
balance of the Premier League. These regulations scrutinize commercial agreements between clubs and entities connected to their owners, such as sponsorship deals, reportedly to prevent inflated valuations that could circumvent Financial Fair Play (FFP) rules.
Manchester City, owned by the Abu Dhabi-based City Football Group, had previously challenged the rules in 2024, with a reported independent tribunal ruling in October that certain aspects, including the exclusion of shareholder loans from APT oversight, were unlawful. This prompted amendments to the rules in November 2024, approved by a 16-4 vote among Premier League clubs despite opposition from City and Newcastle.
In a significant development for English football, Manchester City and the Premier League have reached an out-of-court settlement, resolving their contentious dispute over the league’s APT rules. The agreement, announced on September 8, 2025, brings an end to a legal battle that began in January when City launched arbitration proceedings, challenging amendments to the APT regulations as “unlawful.”
In a joint statement, Manchester City and Premier League confirmed the same. As part of the settlement, Manchester City has accepted that the current APT rules, designed to ensure fair market value in commercial deals linked to club ownership, are “valid and binding”. Both parties have agreed to terminate the proceedings and refrain from further comment, signaling a desire to move forward without escalating tensions.
Manchester City is also reportedly facing over 130 charges of alleged FFP breaches
The settlement is separate from a more high-profile case involving Manchester City, who reportedly face over 130 charges of alleged FFP breaches brought by the Premier League in February 2023. These charges, which City reportedly deny, were examined by an independent commission between September and December 2024, with a verdict still pending. Reports claim that the outcome of this case could have far-reaching implications for City, who have dominated English football with five consecutive Premier League titles from 2020 to 2024 and a Champions League triumph in 2023. A potential points deduction or other sanctions could reshape the competitive landscape, particularly for rivals like Liverpool and Arsenal, who are closely monitoring developments.
The current resolution for Manchester City, however paves the way for a renewed focus on the pitch, where they have made a mixed start to the 2025/26 season under Pep Guardiola. After a 4-0 victory over Wolves on the opening day, losses to Tottenham and Brighton have left City 13th in the Premier League table, six points behind leaders Liverpool. The club is also preparing for a lucrative long-term sponsorship deal with Etihad Airways, which will now proceed under the validated APT framework.
