Manchester City Premier League Dispute Ends Over Commercial Deal Rules | Sports News

Manchester City Premier League Dispute Ends Over Commercial Deal Rules

Manchester City and the Premier League Dispute ended over associated party transaction rules after both sides accepted amended regulations. The resolution comes amid ongoing financial breach allegations against the club.

Manchester City confirmed that the current rules for associated party transactions remain valid and binding. These rules ensure that commercial deals between clubs and entities linked to their ownership reflect fair market value.

Earlier, the club initiated arbitration proceedings on January 20 to challenge these regulations. Reports suggested that City also criticized how the Premier League handled shareholder loans under these rules.

Both Manchester City and the Premier League agreed to stop further public comments on the matter, signaling a truce in a long-running governance battle.

Manchester City Premier League Sponsorship Row Explained

The Manchester City-Premier League sponsorship row started when the league introduced Associated Party Transaction (APT) rules in December 2021 after the Saudi-led takeover of Newcastle United. These rules aimed to ensure that commercial deals between clubs and entities linked to their owners reflected fair market value.

Manchester City challenged these rules last year and won a tribunal ruling that declared them unlawful on multiple grounds, including the exclusion of shareholder loans from fair market value assessments. Consequently, the Premier League consulted clubs on amending the rules. In November, 16 teams voted in favor of the changes during a key meeting.

City’s acceptance of the amended rules now closes a dispute that could have significantly impacted the league. Without APT rules, club-linked entities could inflate sponsorship values, artificially boosting revenue and giving clubs an advantage under profitability and sustainability regulations. This advantage would allow higher spending on transfers and player wages.

The Premier League incorporated shareholder loan assessments into the APT rules last November. However, these changes apply only to ongoing and future loans, not past transactions.

Meanwhile, Manchester City and the Premier League still await the outcome of an independent commission hearing on more than 100 charges for alleged financial rule breaches. City strongly denies these allegations. The hearing took place between September and December last year after the Premier League filed charges in February 2023.