Premier League clubs want more clarity about the settlement of a legal dispute with Manchester City over the rules that govern commercial deals, BBC Sport has been told.
On Monday, clubs were informed by the league that City had accepted associated party transactions (APT) regulations are “valid and binding”, with both parties agreeing to terminate legal proceedings, and a statement being issued shortly afterwards.
APT rules were introduced by the Premier League to prevent clubs from profiting from commercial deals with companies linked to their owners that are deemed above “fair market value”.
City had mounted a lawsuit against the Premier League, claiming the rules were “unlawful”.
However, according to sources at several rival clubs, they have not been told any details about the settlement, nor what it means.
Some suggested the league would be asked to clarify what – if any – assurances or concessions City have been granted at its next shareholders meeting this month.
One senior executive at a Premier League club, who wished to remain anonymous, said: “It’s hard to say anything because we have no idea of the details of the settlement or any implications from it.”
Although most clubs are relieved rules that most feel are essential to preserve competitive balance and fairness are no longer in jeopardy, some are known to be concerned by reports that City are now set to complete a lucrative new sponsorship deal with airline Etihad Airways.
It was one of two Abu Dhabi-linked deals originally blocked by the Premier League in 2023 for not being fair market value, sparking City’s lawsuit.
Despite suggestions that City have been given assurances the deal will now be approved, BBC Sport has been told it would still be subjected to a fair market value assessment by the Premier League board. And officials insist that clubs with state connections – such as City and Newcastle United – will not find it easier to secure approval for commercial deals with companies linked to their owners.
The APT rules were introduced in December 2021 after the Saudi Arabian-led takeover of Newcastle that year.
The rules were successfully challenged by Manchester City in 2024, with an independent tribunal ruling that low-interest shareholder loans should not be excluded from the scope of the APTs, and that changes made to toughen up the regulations also breached competition law.
The league amended the rules accordingly, but against City’s wishes, and in February the club launched a fresh legal challenge, declaring the regulations “unlawful and void”, and triggering a new arbitration.
Since announcing the settlement, BBC Sport has been told that the league’s chief executive Richard Masters and chair Alison Brittain have offered to speak to clubs if they have questions.
However, league officials insist the nature of the agreement means that much of the detail has to remain confidential.
There is no suggestion from either side that this will have any impact on the higher-profile, ongoing saga of the Premier League’s disciplinary case against City for 115 alleged breaches of its financial rules. City deny wrongdoing in a case which had an independent commission hearing conclude nine months ago, but is yet to produce a verdict.
“The compromise means neither party is a winner or a loser, but ultimately one would imagine Manchester City have come out with a good result in the sense that they can probably now push forward and close off some sponsorship deals at a higher value than perhaps the Premier League would previously have allowed,” said sports lawyer Richard Cramer.
“It does mean there is a likelihood Manchester City will be able to spend more money.
“The settlement probably means a better working relationship and maybe this is an indication that the Premier League and the other clubs have indicated enough is enough – it’s not a good optic for the clubs to be fighting and at loggerheads with the governing body.
“One of the biggest concerns for the Premier League is the vast expense on legal fees in relation to these ongoing arbitrations. The funding of these disputes has got completely out of control and a big drain on resources from both a management point of view and of course eating into cash reserves.
“Manchester City have untold wealth behind them to continue with these disputes, but even they may have reached the point of deciding that it’s not good for the sport.”
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15 August
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