In a surprising turn of events, Manchester City and the Premier League have finally found common ground over a long-standing dispute regarding sponsorship rules.
This settlement clears the path for City to push ahead with a major deal with Etihad Airways, ending months of uncertainty.
The Saga Behind the Dispute
The conflict began when the Premier League blocked City’s proposed sponsorship deal with Etihad Airlines in 2023.
The league argued that the terms did not meet their “fair market value” (FMV) requirements under rules designed to regulate commercial partnerships with associated parties (APTs).
City, however, disagreed and launched a legal challenge, claiming the rules were unlawful.
A tribunal eventually sided with City, declaring parts of the Premier League’s regulations invalid.
Even after this legal win, the Premier League attempted to adjust the rules rather than scrapping them entirely, prompting City to prepare for another legal showdown.
Settlement Signals a Possible Thaw
In a move that may hint at warming relations, the Premier League has now informed clubs that the dispute has been settled.
The scheduled tribunal hearing will no longer take place.
Reports indicate that obstacles preventing the Etihad deal have been removed, and City feel assured that they will be treated like any other top-flight club moving forward.
The Etihad Deal and Its History
City’s partnership with Etihad dates back to 2011 when they signed a 10-year, £400 million agreement with the Abu Dhabi-based airline.
While details of the new arrangement remain under wraps, it is expected to represent a major upgrade on the original deal.
Like all deals, it will still undergo the APT and FMV process.
City’s Legal Wins and Premier League Relief
This settlement is widely seen as another victory for Manchester City, while the Premier League likely welcomes the closure of the chapter.
The league also retains its amended APT rules, which were introduced in 2021 to prevent clubs from inflating sponsorships with connected parties.
It’s important to note that this issue is separate from the Premier League’s ongoing case against City for more than 115 alleged breaches of spending rules.
That saga continues without resolution.
Tribunal Rulings That Shaped the Case
The independent tribunal that previously ruled in City’s favor found several aspects of the APT rules unlawful, including the fact that shareholder loans were not assessed under FMV guidelines.
This legal context gave City leverage during negotiations, ultimately leading to the settlement.
Official Statement
On Monday, the Premier League and Manchester City issued a joint statement confirming the settlement.
Both parties agreed to end the arbitration proceedings and stated that City accepts the current APT rules as valid and binding.
The statement also confirmed that neither side will provide further comments.
What Happens Next?
With this settlement, Manchester City can now focus on finalizing their deal with Etihad Airways, while the Premier League can move forward without the looming threat of further legal disputes.
The football world will now watch closely to see how this deal shapes City’s commercial landscape in the coming years.