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Manchester City has reached an agreement with the Premier League after a legal challenge mounted by the club on new rules surrounding the sponsorship agreements.
Most of the Premier League clubs voted in November last year to approve amendments to the rules of competition on the transactions of the associated parties (APT), which were implemented to prevent clubs from benefiting from trade agreements with companies connected to their property considered above the ‘fair market value’.
These changes occurred after a demand from the city in which the club said the rules were “illegal.”
City challenged the amendments in February, but has announced the end of legal procedures, accepting that APT rules are “valid and binding.”
A state statement said: “The Premier League and Manchester City FC have reached an agreement in relation to the arbitration initiated by the club earlier this year with respect to the rules of the transaction of the associated party (APT) of the Premier League and, as a result, the parties have agreed to finish the procedures.
“This agreement ends the dispute between the parties with respect to the APT rules as part of the agreement, Manchester City accepts that the current APT rules are valid and binding.
“It has been agreed that neither the Premier League nor the club will make more comments on the matter.”
