Premier League clubs seek clarity over Manchester City settlement

Premier League clubs have asked the league for clarification after being told Manchester City had accepted that the competition's associated party transaction (APT) regulations are "valid and binding" and that both parties had agreed to terminate legal proceedings.

Clubs were informed on Monday that a statement would be issued following the agreement, but several rival clubs told BBC Sport they have not been given details about the settlement or its implications. Some officials said they expect the Premier League to explain any assurances or concessions at its next shareholders' meeting later this month.

The APT rules were introduced by the Premier League in December 2021 to prevent clubs from benefiting from commercial deals with companies linked to their owners at rates above what the league considers fair market value. Manchester City launched legal challenges, arguing the regulations were unlawful after two Abu Dhabi-linked sponsorship deals, including one with Etihad Airways, were blocked by the Premier League in 2023 as not being fair market value.

Sources at several clubs said they had not been told whether Manchester City had been given any special assurances that would ease approval for prospective deals, though Premier League officials have told clubs any new deal would still be subject to a fair market value assessment by the board. League officials also stressed that clubs with state connections, including Manchester City and Newcastle United, would not be treated differently in the approvals process.

One senior executive at a Premier League club, speaking on condition of anonymity, said: "It's hard to say anything because we have no idea of the details of the settlement or any implications from it." The league has offered to have chief executive Richard Masters and chair Alison Brittain speak to clubs who have questions, but officials said the nature of the agreement meant much of the detail must remain confidential.

Manchester City previously won a 2024 ruling from an independent tribunal that low-interest shareholder loans should not be excluded from the scope of APTs and that changes made to toughen the regulations breached competition law. The Premier League amended the rules following that judgment, but City launched a fresh legal challenge in February, describing the revised regulations as "unlawful and void" and triggering arbitration. It is that arbitration which sources say has now been terminated by agreement.

The settlement does not appear to affect the Premier League's separate disciplinary case against Manchester City, in which the club faces 115 alleged breaches of financial rules. That case has seen an independent commission hearing conclude nine months ago but has not yet produced a final verdict. Both the league and Manchester City deny that the APT settlement bears on the disciplinary process.

Legal experts said the practical effect of the settlement could be to allow Manchester City to pursue commercial deals at higher values than the Premier League might previously have permitted, while still subject to board assessment. Sports lawyer Richard Cramer said: "The compromise means neither party is a winner or a loser, but ultimately one would imagine Manchester City have come out with a good result in the sense that they can probably now push forward and close off some sponsorship deals at a higher value than perhaps the Premier League would previously have allowed."

Cramer added that prolonged litigation had been costly for all parties and that the settlement may signal a desire to reduce the expense and disruption of ongoing disputes. "One of the biggest concerns for the Premier League is the vast expense on legal fees in relation to these ongoing arbitrations," he said. "The funding of these disputes has got completely out of control and a big drain on resources."

Some rival clubs said they were relieved the rules themselves were no longer in immediate jeopardy, while remaining wary until the league provides more detail about how the APT framework will be applied going forward. The Premier League has indicated it will discuss the matter with clubs at upcoming meetings and respond to any formal queries, but reiterated that confidentiality provisions in the settlement limit what can be disclosed publicly.

No timeline was provided for when further information might be shared with clubs or whether the board would publish guidance on the application of APT rules in light of the settlement.

Premier League clubs are expected to press for answers at the shareholders' meeting this month, seeking clarity on whether the settlement changes the practical operation of APT assessments and what, if any, precedents it sets for future commercial approvals.

The league and Manchester City have not released full details of the agreement, and both parties have declined to comment beyond confirming that litigation has been ended by mutual consent.