Manchester City have confirmed they have reached a settlement with the Premier League following a lengthy dispute over Associated Party Transaction (APT) Rules.
In a a situation separate to the 115 charges case which has still yet to have a verdict released, in June City made an unprecedented move by taking legal action and challenging the legitimacy of the league's Associated Party Transaction (APT) rules brought in back in 2021.
These rules were brought in after Newcastle United were taken over by a Saudi Arabia-backed consortium in 2021 and designed to maintain the competitiveness of the Premier League and stop clubs inflating commercial deals with businesses associated with their owners.
What was the dispute between Man City and the Premier League?
City, however, challenged the regulations implemented and said they were victims of "discrimination", while stating they had been the rules had been approved by their rivals as a '"tyranny of the majority".
They also argued that shareholder loans whereby club owners lend finances, needed to be looked at in the same way as APTs.
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Although they did not win as Premier League clubs voted in favour of new APT rules, City achieved some success in a private two-week hearing and were victorious in seven of their key arguments made in a 165-page legal document as three senior legal figures concluded that the rules were “void and unenforceable”.
They also said that the Premier League were wrong to block two of City's sponsorship deals - one of which was a lucrative renewal with Etihad Airways - after claiming they were not of "fair market value”.
But on Monday, City issued a statement and said proceedings have been terminated after an agreement between both parties - with no tribunal necessary and no further legal fees.
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They also said they accepted the APT rules introduced are "valid and binding".
The statement said: "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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City are still awaiting a verdict from their 115 charges cases despite the hearing being concluded in December when closing arguments were heard by a three-person Independent Commission panel.
Topics: Manchester City, Premier League
Josh Lawless