According to reports, there is a feeling that Manchester City have ‘gained something substantial’ from their settlement with the Premier League.
Man City have been embroiled in an intense legal battle with the Premier League since the start of 2023.
This conflict started as Man City were referred to an independent commission after being accused of breaching over 100 of the Premier League’s FFP rules.
Pep Guardiola‘s side face a huge fine, transfer ban, points deduction and/or expulsion from the Premier League if found guilty, though they have insisted on their innocence throughout this process.
At the time of writing, it’s unclear when a verdict on the FFP case will be announced, as updates have been limited since the hearing concluded at the end of 2024.
READ: Man City FFP relegation a pipe dream as third ‘victory’ ushers in fourth vs perennial losers
While this has been ongoing, Man City have also battled the Premier League over Associated Party Transaction (APT) rules as they campaigned for these regulations to be removed.
An independent commission initially ruled in Man City’s favour as the regulations were deemed unlawful, though the Premier League decided to amend the rules rather than abolish them completely.
In response, Man City launched another legal fight against the Premier League to once again push for the rules to be binned, so it was surprising to hear on Monday that the two parties have reached a settlement to ‘end the APT war’.
A statement read: ‘The Premier League and Manchester City FC have reached a settlement in relation to the arbitration commenced by the club earlier this year concerning the Premier League’s Associated Party Transaction (APT) Rules and as a result the parties have agreed to terminate the proceedings.
‘This settlement brings an end to the dispute between the parties regarding the APT Rules. As part of the settlement, 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 be making any further comment about the matter.’
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Now, a detailed report from The Athletic has provided more details on this situation, as the ‘settlement could have huge ramifications for the future of the league and its governance’.
It is also noted that given Man City have ‘settled a month out from a hearing they were supremely confident of’, it ‘suggests they must feel like they have gained something substantial in the negotiations’.
Man City’s ‘new deal’ with Etihad ‘looks likely to be the crux of the agreement’ with the Premier League, who initially ‘blocked’ the agreement in 2023 as it ‘did not pass fair market value tests’.
It is explained that if this deal from 2023 is pushed through following this settlement, it could ‘set a precedent’ for other clubs to follow.
‘The starting point of the disputed Etihad deal is believed to be far higher than the initial agreement while multiple people have told The Athletic that it also includes an annual percentage increase. In these cases, the compounding effect of an uplift each year can mean a difference of only a few per cent, or can be worth hundreds of millions of pounds across the lifespan of the contract, particularly if the starting point is already a high one.
‘If City are able to have the once-blocked Etihad deal approved it would be a significant development for the Premier League as it would become part of the databank used to benchmark and could set a precedent for other clubs.’
