Man City has scored a major win after a final verdict declared the Premier League’s Associated Party Transactions (APT) rules unlawful.
The legal challenge came after the club protested the sponsorship regulations that they argued were designed to curb inflated deals. Consequently, the decision marks a significant moment in the ongoing debate over fair market value in football finance.
In December 2021, the Premier League introduced the APT rules following the Saudi-led takeover of Newcastle United. These regulations were meant to stop clubs from securing oversized sponsorship deals with companies tied to their owners. Moreover, the rules aimed to keep all related party transactions at fair market value, a move that raised concerns among clubs like City.
Under the APT system, any deal with connected parties required a Fair Market Value assessment. If a deal was later found to be inflated, it was blocked immediately. Additionally, several deals were halted using this method, which put pressure on clubs to adhere strictly to the guidelines.
In 2023, City saw two high-profile deals fall through. A major sponsorship agreement with Etihad Airways was blocked, and a proposed deal with First Abu Dhabi Bank was similarly affected. Consequently, City decided that the rules were anti-competitive and launched a legal challenge to overturn them.
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An independent tribunal, composed of three legal experts, examined the challenge in detail. They highlighted that certain elements—such as the exclusion of shareholder loans from the Fair Market Value assessment—were unlawful. Furthermore, the panel pinpointed two additional aspects of the rules that did not hold up under legal scrutiny.
Not long after, the Premier League introduced revised APT rules in November. Sixteen clubs voted in favor of these new guidelines over four dissenting clubs. However, City quickly denounced the changes, arguing that the new rules were equally flawed and issued a fresh legal challenge. Meanwhile, another club even sent a warning letter against rushing through further amendments.
Today’s final verdict ruled that the entire APT system, which operated between December 2021 and November 2024, was unlawful. As a result, any club that had its deals blocked or reduced during this period now has grounds to sue. Moreover, City plans to recover its legal costs, which, when combined with the Premier League’s expenses, could total around £20 million.
Looking ahead, the panel will now review the latest set of APT rules. Should a similar decision be reached, clubs like City and Newcastle could soon secure significantly higher sponsorship deals with related parties. In addition, this decision will likely intensify pressure on the Premier League to overhaul its financial regulations.
