Manchester City and the Premier League have agreed to a settlement in their ongoing legal battle over Associated Party Transaction (APT) rules, with the club now accepting the regulations as valid and binding, ending arbitration proceedings that could have reshaped sponsorship oversight in English football.

The agreement, announced on September 8, 2025, resolves a challenge City launched in January against the league's framework for scrutinizing deals between clubs and entities tied to their owners.

These APT rules, introduced in 2021 after Newcastle's Saudi-backed takeover, require such transactions - like sponsorships from Etihad Airways for City - to be vetted for fair market value, aiming to prevent inflated revenues that could skew competition. Both parties confirmed in a joint statement that the dispute is closed, with no further comments planned, averting a trial slated for October.

City's push stemmed from blocked deals in 2023, including sponsorships with Etihad and First Abu Dhabi Bank, which they argued violated fair process.

An independent panel ruled in October 2024 that parts of the original rules - such as excluding shareholder loans - were unlawful, forcing amendments approved by 16 clubs in November. City, however, contested the revisions as still discriminatory, filing anew in February 2025 via lawyers Freshfields Bruckhaus Deringer.

The February tribunal declared the 2021-2024 rules void, but the league maintained their core validity. This settlement, reached quietly last week, clears the path for City's pending Etihad extension - potentially worth nearly £1 billion over 10 years, covering shirts, stadium, and campus branding - while upholding the rules' enforcement.

The Premier League views the outcome as a win for financial integrity, ensuring no club gains undue advantage through related-party deals that could bypass Profit and Sustainability Rules (PSR). "This settlement brings an end to the dispute," the joint statement read, emphasizing the rules' role in promoting fairness across the division.

City, meanwhile, had positioned their challenge as a broader defense of equitable application, benefiting all 20 clubs by highlighting flaws in the system. Rival fans and analysts on platforms like X have mixed takes - some see it as City backing down after initial victories, others as a pragmatic step that stabilizes the league without weakening safeguards.

Importantly, this has no bearing on City's separate, high-stakes case involving over 115 charges of alleged financial breaches from 2009-2018, which they deny. That hearing wrapped in December 2024, with a verdict possibly delayed until late 2025 or beyond, potentially carrying penalties like points deductions or expulsion.