Manchester City and the Premier League have reached a settlement regarding the legal challenge brought by the club concerning the league's Associated Party Transaction (APT) rules. The settlement concludes a dispute that began when City challenged the legitimacy of the APT rules, which were introduced in 2021 to ensure the Premier League's competitiveness and prevent clubs from inflating commercial deals with businesses associated with their owners.

In June, Man City initiated legal action against the Premier League, challenging the APT rules. The club argued that the rules were anti-competitive and breached public law principles. Despite not winning initially, as Premier League clubs voted in favor of the new APT rules, City did achieve some success in their hearing. They were reportedly victorious in seven of their key arguments presented in a 165-page legal document, with senior legal figures concluding that some of the rules were "void and unenforceable". The club also contended that the Premier League was wrong to block two of City's sponsorship deals, including a lucrative renewal with Etihad Airways.

The legal challenge was separate from the case concerning more than 100 charges against City for alleged breaches of Premier League financial rules. City denies these charges.

On Monday, Manchester City issued a statement confirming that proceedings had been terminated following an agreement between both parties, negating the need for a tribunal. As part of the settlement, Manchester City has accepted that the current APT rules are valid and binding. The club's 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". The statement further clarified that "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". Both the Premier League and Manchester City have agreed not to comment further on the matter.