Kevin De Bruyne of Manchester City in action during a Premier League match in 2025. Photo credit: Getty Images via ESPN.
Credit: Getty Images via ESPN
Manchester City and Premier League have settled their dispute over associated party transaction rules, with City accepting current regulations as “valid and binding” while positioning to finalize a potential £1 billion Etihad Airways sponsorship deal.
Manchester City and Premier League End APT Rules Dispute as £1bn Etihad Deal Looms
Manchester City and the Premier League have officially ended their contentious dispute over associated party transaction (APT) rules, with the club accepting the current regulations as “valid and binding” in a joint statement released on September 8, 2025. The settlement concludes arbitration proceedings that City launched on January 20, 2025, which had challenged the fairness of shareholder loan treatment under the APT framework and threatened to significantly disrupt Premier League operations. The resolution clears the path for City to pursue major sponsorship arrangements without further legal complications.
The dispute centered on APT rules introduced in December 2021 following Newcastle’s Saudi-led takeover, designed to regulate transactions between clubs and ownership-related entities by enforcing fair market value assessments. City’s original challenge specifically contested how the Premier League treated shareholder loans under these regulations, seeking more favorable conditions for their commercial dealings. The Premier League had amended the rules after a tribunal found the original framework unlawful, excluding shareholder loans from fair market value requirements, but City initially opposed these modifications despite 16 clubs voting in favor last November.
Following the settlement, City is now positioned to finalize a new Etihad Airways sponsorship agreement potentially worth up to £1 billion, representing more than double their previous 2011 deal valued at approximately £400 million over ten years. The Premier League has provided assurances that City will not receive differential treatment compared to other clubs when negotiating sponsorship deals involving ownership-linked entities, signaling a standardized approach moving forward.
Both parties have agreed to make no further public comments regarding the settlement specifics, reflecting a mutual commitment to confidentiality and closure on the matter. The Premier League’s enforcement of APT rules aimed to maintain financial fairness and transparency following concerns raised by ownership changes across the league, while City’s position evolved from seeking legal challenges to accepting the amended regulatory framework.
While the new Etihad sponsorship deal remains officially unconfirmed with no formal contract terms released, media reports suggest the agreement could be finalized in the near term following the dispute resolution. The settlement’s exact terms and any additional conditions have not been publicly disclosed, though the resolution eliminates regulatory obstacles that previously complicated City’s commercial negotiations and provides clarity for future sponsorship arrangements under the established APT framework.
