Manchester City and the Premier League have settled a legal dispute over the rules governing associated party transactions (APT), which are crucial for maintaining financial fairness in football.

As a result of the settlement, the planned October trial to address these issues will be canceled, ending a significant legal chapter.

Importantly, the settlement does not directly impact the ongoing case with 130 charges of financial misconduct against City, which remains under investigation.

Manchester City is also involved in a separate disciplinary process with over 130 charges related to alleged breaches of league financial rules, with a decision from an independent commission still pending after hearings held between September and December 2024.

While the settlement resolves the dispute over the APT rules, City continues to contest the broader charges, which are part of ongoing investigations into financial rule violations.

The settlement includes amendments to the APT rules, such as assessing shareholder loans at fair market value going forward and providing clubs earlier access to valuation data, though these changes are not retroactive.

Previously challenged by City, the APT rules, introduced in December 2021 following Newcastle's Saudi-led takeover, were deemed unlawful on multiple grounds, including the exclusion of shareholder loans from fair market value assessments.

The agreement is viewed as a strategic move to strengthen City’s financial and legal position amid ongoing legal battles with the Premier League.

The resolution allows the Premier League to uphold its stance on APT rules, which are vital for ensuring competitive fairness and preventing clubs from inflating revenues through linked-party deals.

Both City and the Premier League agreed to terminate the legal proceedings related to these rules, ending hostilities and allowing for a clearer regulatory environment.

City’s acceptance of the rules’ validity may influence future legal appeals, and the resolution helps safeguard the league’s ability to regulate financial fairness.

Meanwhile, City’s renewed partnership with Etihad Airways highlights their focus on global exposure and financial stability amid ongoing legal challenges.