Manchester City and the Premier League have resolved their legal battle concerning Associated Party Transaction regulations, with the club announcing a settlement on Monday afternoon.
The agreement terminates arbitration proceedings that City initiated earlier this year challenging the league's APT framework.
In a significant concession, City have acknowledged that the existing APT regulations are legally sound and enforceable.
Both organisations confirmed they would terminate all legal proceedings related to this matter.
Manchester City have landed a big win over the Premier League
|REUTERS
The resolution marks the conclusion of what had been characterised as football's civil war, with neither party planning to provide additional statements regarding the settlement terms or negotiations.
The conflict originated when City filed legal proceedings against the Premier League in January 2024, with law firm Freshfields representing the club whilst Slaughter and May defended the league.
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A tribunal comprising former High Court judge Sir Nigel Teare, ex-Supreme Court Justice Lord Dyson, and Christopher Vajda KC initially ruled in October 2024 that three elements of the APT regulations were illegal.
This prompted public disputes between both sides regarding the ruling's interpretation.
A subsequent hearing in February resulted in a declaration that the entire regulatory framework should be considered invalid.
Manchester City have released a statement after the latest legal agreement
| PAThe Premier League responded by implementing revised regulations in November, though City maintained these remained legally flawed, prompting fresh legal action in February.
The joint statement released by both parties read: "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."
The announcement continued: "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."
Both organisations emphasised their mutual decision to refrain from making additional public statements about the resolution.
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Lord Pannick is defending City from the Premier League
| PAThe APT regulations govern commercial agreements between clubs and entities connected to their ownership, mandating these transactions reflect fair market value to maintain competitive balance across the league.
This settlement remains distinct from City's ongoing case involving 115 alleged financial rule violations, which proceeded to trial last autumn with judgement still pending.
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Man City chief Khaldoon Al Mubarak is unhappy with the current Premier League rules | GETTYThe dispute centred particularly on shareholder loan provisions, with City reportedly seeking retrospective application of fair value assessments to such arrangements.
The resolution carries substantial implications for English football's financial governance, as the APT framework aims to prevent wealthy clubs from artificially inflating commercial deals to circumvent spending restrictions.