Manchester City have been tipped to make millions after announcing a settlement with the Premier League over APT rules.
City took the unprecedented step of challenging the legitimacy of the league's Associated Party Transaction (APT) rules brought in back in 2021 following on from the Saudi Arabia-backed takeover of Newcastle United.
The rules were primilarly brought in to stop clubs inflating commercial deals with businesses associated with their owners, as well as maintaining the competitiveness of the Premier League.
The rules blocked two of City's lucrative sponsorship deals and the club, feeling as though they were being "discriminated", took legal action.
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City, owned by the Abu Dhabi United Group and Sheikh Mansour, submitted a 165-page legal document and a tribunal held over two-weeks saw three senior legal figures conclude that the regulations were “void and unenforceable” - and that the Premier League were wrong to reject their two sponsorship deals for not being of "fair market value".
In the end, City and the Premier League reached a settlement to terminate any ongoing proceedings.
"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," a statement read.
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"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."
Man City set for record sponsorship deal
Though the development is not related to the 115 charges case which has not yet had a verdict released after closing arguments were heard in December, it is huge news from City.
As per Mike Keegan of the Daily Mail, a sponsorship renewal with Etihad Airways deal which was knocked back in 2023 now looks set to be get the green light and could give City increase funds at a crucial time.
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And according to Stefan Borson, a football finance expert, that deal is likely to be a record for sponsorship in Britain - and could total a whopping £1.75 billion.
Speaking on talkSPORT, Borson explained: "We know that City went to the Etihad with a very large proposal and we know that the only difference they had in approving it was on what's known as the escalator - what tends to happen is you'll tend to have an annual average value to the agreement over the agreement.
"And it will have an escalator that usually deals with inflation or other changes within that agreement.
"If you start at £100 million per annum for the bundle of rights, by the end of the period - depending on what that escalator percentage is - you may end up with somewhere between £150 million and £250 million by the end of the 10-year period.
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"The likelihood is, and I've been informed, that when it does eventually get approved, whether it's at the level Etihad proposed or at an adjusted level, will be the largest British sporting sponsorship deal of all-time - and will be well in excess of a £1 billion over 10 years partly because of the way that escalator works.
"I would expect the total value over it over the 10-year period, to be something like £1.5 billion to £1.75 billion."
Etihad sponsor City's shirts as well as having the naming rights of their stadium, which is nearing an increase to more than 60,000 once work is completed.
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City have just penned a new £1 billion deal with kit manufacturers Puma which will last 10 years - a significant increase on the previous £65m-a-year arrangement.
Topics: Manchester City
Josh Lawless