Manchester City and Premier League Reach Settlement on Sponsorship Rules Challenge

Manchester City Football Club and the Premier League announced a significant settlement regarding the club’s challenge to the Premier League’s Associated Party Transaction (APT) Rules.

This resolution, which concludes an arbitration process initiated by Manchester City earlier this year, not only settles a significant legal dispute but also clears a critical hurdle for the club to advance its long-standing sponsorship agreement with Etihad Airways.

Big news: Premier League backs down in sponsorship dispute to let Man City complete huge Etihad deal https://t.co/Twb1Xyjd8t

— Martyn Ziegler (@martynziegler) September 8, 2025

Background of the Dispute

The Associated Party Transaction (APT) Rules are designed to ensure that transactions between Premier League clubs and entities closely linked to their ownership—such as sponsors—are conducted at fair market value. Manchester City, owned by the Abu Dhabi United Group, challenged these rules, arguing they were unlawful and unfairly applied, particularly in relation to their high-profile sponsorship deal with Etihad Airways, a state-owned airline based in Abu Dhabi. The arbitration process focused on the validity and enforcement of these rules, distinct from the separate matter of the 115 financial charges facing the club.

The dispute stemmed from a tribunal ruling in October 2024, which found that both the original and amended APT Rules violated UK competition law, were procedurally unfair, and discriminated against clubs by excluding shareholder loans from scrutiny while targeting sponsorship deals like Manchester City’s with Etihad. This ruling brought significant attention to the club’s commercial arrangements, particularly their lucrative partnership with Etihad, which includes naming rights for the Etihad Stadium and extensive branding across club assets.

Terms of the Settlement

As outlined in Manchester City’s official statement, the club and the Premier League have mutually agreed to terminate the arbitration proceedings. Under the settlement, Manchester City has accepted the validity and binding nature of the current APT Rules, acknowledging the Premier League’s authority to regulate such transactions. In return, the dispute over the application of these rules has been resolved, with both parties agreeing to refrain from further public comments on the matter.

This resolution effectively addresses the legal barriers that had previously complicated Manchester City’s ability to fully comply with or expand their sponsorship agreements under the APT framework. By settling, the club avoids further legal entanglements that could have delayed or jeopardized their commercial partnerships.

Impact on the Etihad Deal

The settlement is a pivotal development for Manchester City’s sponsorship agreement with Etihad Airways, one of the club’s most significant commercial partnerships. The Etihad deal, which includes the naming rights for the Etihad Stadium and prominent branding on kits and other club assets, has been a cornerstone of Manchester City’s financial strategy since 2008. However, the deal has faced scrutiny under the APT Rules due to Etihad’s ties to the club’s Abu Dhabi ownership, raising questions about whether the sponsorship reflects fair market value.

With the settlement now in place, Manchester City can move forward with greater confidence in their compliance with Premier League regulations, ensuring the Etihad deal remains secure and potentially allowing for its expansion or renewal. The resolution removes the risk of further challenges to the deal’s legitimacy under the APT framework, providing clarity for both the club and Etihad Airways in their ongoing partnership. This stability is crucial as Manchester City seeks to maximize revenue streams to support their on-field ambitions and infrastructure investments, such as the planned expansion of the Etihad Stadium to increase capacity and enhance fan experiences.

Implications for Manchester City and the Premier League

This settlement is a pivotal moment for Manchester City, as it resolves a significant legal hurdle and allows the club to focus on its on-field performance and strategic objectives. By accepting the validity of the APT Rules, Manchester City aligns itself with the Premier League’s regulatory framework, potentially easing tensions with the league’s governing body. However, the club’s broader legal battle concerning the 115 financial charges remains ongoing, and this settlement does not directly impact that case.

For the Premier League, the agreement reinforces the enforceability of its sponsorship regulations while addressing criticisms raised by the tribunal. The resolution demonstrates a willingness to negotiate and find common ground with one of its most prominent clubs, avoiding prolonged legal disputes that could undermine the league’s authority.

Manchester City’s Current Landscape

The settlement comes at a time when Manchester City is navigating a transitional phase. The club has undergone a significant squad overhaul, with key departures such as goalkeeper Ederson, who joined Fenerbahce after eight trophy-laden years, and midfielder Ilkay Gundogan, who moved to Galatasaray. New signings, including goalkeeper Gianluigi Donnarumma from PSG, signal a shift toward a younger, revitalized squad under manager Pep Guardiola.

On the pitch, Manchester City has faced challenges, losing two of their first three Premier League games in the 2025/26 season. Upcoming fixtures against rivals Manchester United and Arsenal add pressure to regain momentum. Off the field, the club has responded to fan concerns by reducing ticket prices for both Premier League and Champions League matches, with some Champions League tickets available for as low as £10 for under-18s.

Looking Ahead

As Manchester City prepares for a crucial stretch of the season, the settlement provides a degree of stability off the pitch. The club’s acceptance of the APT Rules may pave the way for smoother commercial operations, particularly regarding sponsorship agreements with entities linked to their ownership. However, the ongoing scrutiny over the 115 charges ensures that Manchester City’s financial dealings will remain under the spotlight.

For now, the focus shifts back to the Etihad Stadium, where Pep Guardiola and his squad aim to reclaim their dominance in the Premier League and beyond. With the APT dispute resolved, Manchester City can channel their energies into their pursuit of silverware, supported by a fanbase eager to see their team return to the top.