Manchester City and the Premier League have settled a dispute over the league's Associated Party Transactions (APT) rules; the legal action was brought separately from a lawsuit involving more than 100 allegations against City for alleged breaches of Premier League financial rules; City denies the allegations.
Manchester City and the Premier League have reached an agreement on the rules governing associated party transactions (APT).
The lawsuit is separate from more than 100 allegations against City for alleged breaches of Premier League financial rules, which the club denies.
It is not yet known when the decision on this case will be announced.
On January 20, City began arbitration proceedings against the current APT rules, which are designed to ensure that transactions between clubs and entities associated with their ownership are made at fair market value.
A trial had been scheduled for October, but the settlement means that will not be necessary.
City's claim reportedly included criticism of the Premier League's treatment of shareholder loans under its rules. The league and City have agreed not to comment further on the matter.
- Sky Sports to show 215 Premier League games live this season
- Got Sky? Watch Premier League matches live on your phone 📱
- Don't have a Sky subscription? Subscribe to Sky Sports or watch contract-free now 📺
What are the rules for transactions with associated parties?
- Premier League rules require any club, its players, manager or any “senior official” to deal with “connected parties” other than themselves.
- “Related parties” are companies or persons who have a significant interest in the relevant club, financially or otherwise.
- The Premier League board then reviews each deal to assess whether it represents fair market value.
- The league says the rule promotes “fairness” across the division by ending “the reliance on increased commercial revenues associated with club ownership.”
A Manchester City statement said: “The Premier League and Manchester City Football Club have reached an agreement in relation to the arbitration proceedings commenced by the Club earlier this year in relation to the Premier League Associated Party Transactions (APT) Rules and, as a result, the parties have agreed to discontinue the proceedings.”
This agreement puts an end to any dispute between the parties regarding the APT Rules. As part of the agreement, Manchester City acknowledges that the current APT Rules are valid and binding.
“It has been agreed that neither the Premier League nor the club will make any further comment on this matter.”
The Premier League also released a statement confirming the settlement.
“The Premier League and Manchester City Football Club have reached an agreement in relation to arbitration proceedings commenced by the Club earlier this year in relation to the Premier League Associated Party Transactions (APT) Rules and, as a result, the parties have agreed to discontinue the proceedings.
This agreement puts an end to any dispute between the parties regarding the APT Rules. As part of the agreement, Manchester City acknowledges that the current APT Rules are valid and binding.
“It has been agreed that neither the Premier League nor the club will make any further comment on this matter.”
What about the charges under Article 115?
City and the Premier League are still awaiting the outcome of a hearing by an independent panel which has considered more than 100 allegations against the club for alleged breaches of the league's financial rules – charges City vigorously deny.
The hearing took place between September and December last year after City were charged by the Premier League in February 2023.
The date for the announcement of the decision has not yet been announced.
Explained: Why Manchester City defied Premier League rules
Please use Chrome browser for a more accessible video player.
Sky Sports' Kaveh Solhekol explains the nature of Manchester City's settlement with the Premier League under the Associated Party Transactions Rules. The legal action is separate from allegations of alleged breaches of financial rules, which the club denies.
Kave Solekol from Sky Sports News:
“It's very important because the Premier League and Manchester City have been at loggerheads over this whole issue. Manchester City have challenged the rules in court, something we've never seen before.”
It all started back in 2023. Manchester City wanted to strike a new sponsorship deal with Etihad Airways and First Abu Dhabi Bank. They submitted these proposals to the Premier League to ensure they complied with APT rules, but the league blocked the deals.
City challenged the legality of these rules, they did not agree that the deals should be blocked. And in September last year, an independent commission ruled that some key elements of the APT rules were illegal. Back-page news reported that some Premier League rules had been proven to be illegal.
“The Premier League said: 'This does not mean that all the rules are illegal, just some key elements of them, and we will quickly amend those rules to ensure they are legal.'
But Manchester City effectively said: ‘No, that’s not enough, let’s wait for the tribunal to give us all the reasons we need.’ We got those reasons in February this year and the tribunal ruled that the APT rules for 2021-24 were invalid and unenforceable.
On the face of it, it was a major win for Manchester City, who launched a new legal challenge against the APT's amended rules. Today, it was announced that they had reached a settlement agreement, in which City acknowledged that the rules as they currently stand are valid and binding.
Sourse: skysports.com
