The Premier League’s APT rules have been in force since 2021, and despite Manchester City settling its unlawful claims, why are they on the cusp of securing another £1bn sponsorship deal?
On September 8, Manchester City and the Premier League released statements announcing they have agreed to settle their dispute over new amendments to the Associated Party Transactions (APT) rules.
The eight-time Premier League champions accepted the current ATP rules are “valid and binding” and as a result have ended proceedings with the league.
In June 2024, Man City lodged a lawsuit against the Premier League claiming the league was discriminating against the club and that its previous APT rules were unlawful.
This was related to the league preventing a sponsorship renewal of Man City’s sponsorship with Etihad Airways in 2023, which is the club’s front-of-shirt sponsor and holds the naming rights for the Etihad Stadium.
The Premier League blocked the transaction as it believed the potential deal did not fall in line with fair market value of the APT rules. Man City subsequently challenged the league’s rules and sought to have them amended, calling on support from other Premier League clubs.
In November 2024, Premier League clubs unanimously voted in favor for the new amendments to the APT rules; four clubs (Man City, Newcastle United, Aston Villa and Nottingham Forest) voted against.
One of the key amendments to the APT rules last November was an assessment of shareholder loans for fair market value, which was deemed unlawful by an arbitration in October 2024.
This was successfully challenged by Man City and will now assess shareholder loans in relation to commercial deals but this does not apply retrospectively. Rather, this amendment will apply to ongoing and future shareholder loans and loans for equity.
While Man City continued to challenge the new amendments, the clubs’ latest settlement now enables it to renegotiate its blocked 2023 sponsorship deal with Etihad Airways – a deal which could be valued at close to £1bn.
Why Puma helps Man City’s Etihad deal
In July 2025, Man City and Puma announced a £1bn 10-year extension of their kit deal.
Not only does the £100m per-year deal hand Man City a significant revenue boost, but it also signalled the club’s global value and how brands like Puma view the club.
No official figures were disclosed in Man City’s talks with Etihad Airways before the Premier League blocked the renewal in 2023, but the decision suggests the league viewed the deal as inflated, given the airline is owned by Abu Dhabi’s sovereign wealth fund ADQ.
Several factors could work in Man City’s favour, however, as it eyes a potential billion-pound deal. The club’s financial growth on and off the pitch since its first Etihad Airways agreement in 2009 is significant, while Puma’s recent valuation of the City brand may encourage Etihad to match, or even exceed. that figure given its long-standing ties with the club.
Should other clubs be worried?
The APT rules were introduced by the Premier League shortly after the Saudi Public Investment Fund’s (PIF) ownership takeover of Newcastle, in which it swiftly agreed a new front-of-shirt sponsorship deal with Saudi entertainment company Sela.
APT rules seek to “strike a fair, reasonable and proportionate balance between competing interests for the long-term benefit of the league, its clubs and other stakeholders in our game, including fans, by encouraging a competitive level playing field that is underpinned by financial responsibility”.
The new amendments to the rules are also in place to align with the league’s Profit & Sustainability Rules (PSR) in order to maintain long-term financial stability for Premier League clubs by “limiting reliance on enhanced commercial revenues received from entities linked to the Club’s ownership”.
Martyn Ziegler, Chief Sports Reporter for The Times, wrote that other Premier League clubs with no close connections to associated companies for potential commercial dealings could suffer a “severe setback”.
However, the Premier League will continue to enforce fair market value for all sponsorship and commercial dealings for its clubs.
