Manchester City and the Premier League have settled their long-running dispute over rules governing commercial contracts.
Both sides agreed to end the legal process. City accepted that the rules for Associated Party Transactions (APT) are valid and binding.
The club had previously launched legal action, claiming the new rules were unlawful.
In a joint statement, both parties said they would not comment further on the matter.
Disciplinary case still ongoing
Manchester City is still awaiting the outcome of a landmark disciplinary hearing. The Premier League has charged the club with more than 100 alleged breaches of financial rules.
City denies any wrongdoing.
Last year, an independent arbitration panel ruled against parts of the APT rules after City filed a lawsuit.
The rules aim to stop clubs from gaining unfair advantage through inflated sponsorship deals with companies linked to their owners.
In November 2024, a majority of Premier League clubs voted for changes to the rules. City strongly opposed them.
Background to the APT rules
The rules were introduced in December 2021, following the Saudi-led takeover of Newcastle earlier that year. Amendments followed in March and November 2024.
Manchester City successfully challenged the rules in 2024.
A tribunal decided that low-interest shareholder loans could not be excluded. It also ruled that tougher amendments to the rules breached competition law.
After the decision, City criticised the league for suggesting quick changes were possible. The club warned it would take further legal action if rushed amendments were made.
City also said the proposed changes would retroactively allow shareholder loans. That was one of the practices just declared unlawful.
The club argued that no vote should take place before the arbitration panel made a final ruling.
Despite opposition from City, Newcastle United, Nottingham Forest and Aston Villa, the league voted through the changes.
Earlier this year, both sides attended a two-day hearing to present arguments on the consequences of the initial ruling.
Costly peace after years of conflict
Now, a settlement has been reached. It ends a long and expensive legal battle that cost both sides millions in legal fees.
Analysis: peace after bitter fight
This deal closes a bitter, lengthy and costly legal conflict.
League officials and most clubs will be relieved. The APT rules, considered essential to fairness and competitive balance, now remain intact.
With the dispute over, Manchester City is expected to re-submit a sponsorship proposal with Etihad Airways. The Premier League blocked that deal, along with another Abu Dhabi-linked contract, in 2023 for not reflecting fair market value. That block sparked City’s lawsuit.
Despite today’s peace, the bigger fight continues. The Premier League’s disciplinary case against City over more than 100 alleged breaches remains unresolved.
City maintains it has done nothing wrong. An independent commission finished its hearings nine months ago, but a verdict is still pending.
