Manchester City win legal battle over Premier League’s sponsorship rules

A tribunal has ruled that the Premier League’s sponsorship regulations from 2021 to 2024 are “void and unenforceable.”

The ruling follows an independent arbitration panel’s decision last year that found flaws in the league’s Associated Party Transaction (APT) rules after a legal challenge from Manchester City.

Despite the ruling, the Premier League insists the current APT rules remain “valid and enforceable” and continue to be in “full force.”

The APT rules were introduced to prevent clubs from signing inflated sponsorship deals with companies linked to their owners, ensuring agreements reflect “fair market value.”

In November, the league passed amendments to the regulations, despite opposition from Manchester City, Newcastle, Nottingham Forest, and Aston Villa.

Friday’s ruling does not impact the November amendments, which remain in place but are now facing a separate legal challenge.

The tribunal’s conclusion stated: “In the first partial final award it was declared that the APT rules and amended APT rules were unlawful in three respects.

“There now arises for decision the question whether those three respects can be severed from the remaining APT rules so that those remaining APT rules are valid and enforceable.

“The three respects in which the APT rules and amended APT rules were unlawful cannot be severed with the result that the APT rules as a whole are void and unenforceable.”