Manchester City and the Premier League have resolved their dispute over commercial regulations, with the club acknowledging that the current rules on ‘associated party transactions’ (APT) are “valid and binding.”
The disagreement began in January when City initiated arbitration proceedings challenging the APT rules, which aim to ensure that deals between clubs and entities linked to their owners are conducted at fair market value. City’s challenge reportedly included concerns over how shareholder loans were treated under these regulations.
The APT rules were originally introduced in December 2021 following the Saudi-led takeover of Newcastle United. City had previously won a legal challenge against an earlier version of the rules, with a tribunal ruling that they were unlawful in several respects, including the exclusion of shareholder loans from fair market value assessments.
After further consultations, the Premier League amended the rules, with 16 clubs voting to approve the changes in November 2024. The updated regulations now require shareholder loans to be assessed for fair market value, but this applies only to ongoing and future loans, not retrospectively.
City’s acceptance of the revised rules effectively ends a dispute that had the potential to significantly affect the league’s financial fairness. Without such regulations, owners might artificially inflate sponsorship values to boost revenue and gain an unfair advantage under the league’s profitability and sustainability rules.
Despite this settlement, Manchester City still await the outcome of an independent commission’s hearing into over 100 alleged breaches of financial regulations—charges the club strongly denies. The hearings concluded in December, with a decision yet to be announced.
