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The Premier League and Manchester City have reached a settlement, drawing a line under their protracted battle over sponsorship regulations.
At the heart of the dispute was the league's Associated Party Transaction (APT) framework, introduced in December 2021 in the wake of Newcastle United's Saudi-backed takeover.
Designed to regulate commercial agreements between clubs and businesses with close ownership ties, the rules have faced repeated scrutiny and several amendments since their inception.
City consistently argued that aspects of the framework were overly restrictive and unlawful under competition law.
Their stance gained traction in December 2023 when a tribunal ruled in the club's favour, declaring that the exclusion of low-interest shareholder loans from the regulations was unlawful. That judgement was viewed as a significant victory for the reigning champions.
However, friction between the club and the league deepened as further changes to the APT rules were pushed through in late 2024, despite City's vocal criticism.
While most Premier League clubs supported the revisions, both City and Newcastle raised concerns about the potential impact on ownership structures and sponsorship strategies. City went as far as warning that "knee-jerk" alterations could provoke further legal action.
The long-running row culminated in a two-day hearing earlier this year, where both sides put forward detailed legal arguments.
Ultimately, the case was resolved through a settlement, ending one of the most contentious regulatory disputes in recent Premier League history.
A statement issued by Manchester City this week confirmed: "The Premier League and Manchester City FC have 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."
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