Premier League and Manchester City settle APT dispute, clearing way for Etihad deal
Arbitration terminated after City accepts current Associated Party Transaction rules, removing barriers to a new Etihad Airways agreement
The Premier League and Manchester City have reached a settlement over the club's challenge to the competition's Associated Party Transaction (APT) rules, ending arbitration and removing obstacles to a new sponsorship agreement with Etihad Airways.
A statement released on Monday said the parties had "reached a settlement in relation to the arbitration commenced by the club earlier this year concerning the Premier League’s Associated Party Transaction (APT) Rules and as a result the parties have agreed to terminate the proceedings. This settlement brings an end to the dispute between the parties regarding the APT Rules. As part of the settlement, Manchester City accepts that the current APT Rules are valid and binding. It has been agreed that neither the Premier League nor the club will be making any further comment about the matter."
The development paves the way for City to complete a wide-ranging commercial deal with Etihad Airways, the Abu Dhabi state airline that already holds shirt and stadium naming rights. Details of the new agreement have not been released, but it is expected to represent a substantial increase on the club's previous arrangement.
The dispute dates to 2023, when the Premier League blocked a proposed Etihad deal on the grounds that it did not represent fair market value (FMV) under APT rules introduced in 2021. Those rules were adopted after the Saudi takeover of Newcastle United and were intended to prevent clubs from registering inflated sponsorships with parties linked to ownership.
City challenged the Premier League, arguing the rules were anti-competitive and unlawful. An independent tribunal subsequently found elements of the rules unlawful, including that shareholder loans were not subject to the same FMV assessment. The Premier League then amended the regulations rather than rewriting them entirely, prompting further legal action from City and the scheduling of a new hearing that has now been cancelled after the settlement.
League officials informed clubs on Monday that the agreement with City had been reached and that the scheduled arbitration would not proceed. The Premier League will retain the amended APT rules, and City has accepted they are valid and binding under the terms of the settlement.
The 2011 agreement between City and Etihad ran for 10 years and was reported at about £400 million. City owners are based in Abu Dhabi; the airline has been a principal commercial partner and naming-rights sponsor since that earlier deal. Club officials have said they expect the replacement contract to represent an uplift on the 2011 terms, though no figures have been disclosed.
The APT settlement is separate from the Premier League's ongoing case alleging more than 115 breaches of its financial rules by Manchester City. That separate disciplinary process remains unresolved and its outcome has not been affected by this settlement, according to league sources.
By agreeing to end the arbitration and accept the current APT rules, both sides have brought to a close a long-running legal sequence that had unsettled relations between the Premier League and one of its leading clubs. The parties have agreed not to make further public comment on the matter.