In early April 2025, Manchester City won a significant legal challenge to the Premier League's Associated Party Transaction (APT) regulations. An independent arbitration panel ruled that elements of the league's previous APT rules were illegal, siding with City on key issues that could have far-reaching implications for financial governance throughout the competition.
The timing of this victory is important, as Manchester City is still under increased regulatory scrutiny. Meanwhile, UK betting sites not on GamStop, which are known for providing greater flexibility, enhanced player control, and a wide range of unrestricted markets, continue to attract fan interest in the wake of the club's legal battles.
What Were City Challenging?
The dispute centred on Premier League rules, which were first implemented in December 2021 and require clubs to seek independent assessments for commercial deals involving related parties — companies affiliated with club owners. These measures were designed to ensure that such transactions reflected fair market value and followed financial fair play principles.
City, majority-owned by the Abu Dhabi-based City Football Group, claimed that some of the rules were unlawful and discriminatory. Particularly concerning was the treatment of sponsorships from UAE-linked companies such as Etihad Airways.
The arbitration panel determined that several aspects of the previous APT regime violated UK competition law and procedural fairness standards. Crucially, it ruled that some of the Premier League's methods for assessing related-party transactions were not legally valid, and it dismissed previous attempts to block two of City's sponsorship deals.
Broader Implications
The credibility of the previous system was severely damaged by this ruling, even though the arbitration panel did not invalidate the entire set of APT regulations. Notably, the Premier League had already implemented a revised version of the APT rules in November 2024 and recognised the need for reforms prior to this decision.
This case is distinct from the 115 charges Manchester City faces for alleged financial breaches between 2009 and 2018. However, the timing of this victory boosts City's morale, as hearings on those charges are expected to begin in the coming weeks.
According to club sources, they are confident that the arbitration decision will strengthen their defence in related proceedings. Legal experts point out that although the Premier League still has extensive authority to control financial matters, the tribunal's ruling emphasises the importance of cautious, legally compliant rule-making.
A Power Struggle Behind the Scenes
Analysts see the APT dispute as part of a larger struggle for financial control in English football. It has been reported that up to ten other Premier League clubs backed the league's side during arbitration and highlighted the tensions between traditional powers and newer elite clubs with global support.
Despite this, the tribunal's decision demonstrates the importance of carefully balancing financial regulations with competition law and individual club rights.
What’s Next?
Manchester City will now adhere to the updated APT rules, which were implemented last year. Their successful challenge to the previous framework, however, might still have an impact on how those regulations are applied and interpreted.
The case marks a significant turning point in the Premier League's growing relationship with its top clubs. It shows that clubs like Manchester City are prepared to defend their commercial freedoms and that even the most powerful regulatory bodies must respect distinct legal boundaries.