Sponsorship disagreement between Manchester City and the Premier League has been resolved
The Premier League and Manchester City have reached a settlement in their legal dispute over the Associated Party Transaction (APT) rules, according to a joint statement from both parties. This development marks a significant step forward in the ongoing dispute, although an ongoing investigation into 130 alleged financial breaches by Manchester City remains separate.
The settlement, announced recently, comes after Manchester City challenged the revised APT rules on multiple occasions. The club was represented by the international law firm CMS during the legal dispute.
The APT rules are designed to prevent clubs from artificially inflating their revenues through excessive sponsorship deals with related parties. The dispute between Manchester City and the Premier League did not affect the ongoing investigation into these financial practices.
Interestingly, the high loans provided by owners of clubs like Arsenal or Brighton were not classified as associated party transactions in the dispute between Manchester City and the Premier League. Furthermore, the settlement does not concern the lucrative deal between Manchester City and Etihad Airways, which was made possible by the settlement over the APT rules.
The report about the finalization of the deal with Etihad Airways comes from The Times. The exact terms of the deal have not been disclosed, but it is expected to be a significant boost for Manchester City's finances.
If found guilty in the financial breaches investigation, Manchester City could face penalties such as fines or points deductions, or even expulsion from the Premier League, although this outcome is considered unlikely. A verdict on the financial breaches investigation is expected in the coming weeks.
Both Manchester City and the Premier League have agreed not to comment further on the matter, regarding both the settled sponsorship dispute and the ongoing financial breaches investigation. The settlement marks a positive step towards resolving the disputes and moving forward for all parties involved.
