Manchester City and the Premier League have agreed to end their long-running legal battle over the regulations governing commercial transactions.

In a joint statement, both parties confirmed that City have accepted the validity and binding nature of the league’s rules on associated party transactions (APTs).

They added that no further public comments would be made on the settlement.

The dispute stemmed from City’s legal challenge, in which the club argued that the revised APT rules were “unlawful.”

These rules were introduced in December 2021 following Newcastle United’s Saudi-backed takeover, with the aim of preventing clubs from inflating revenues through sponsorship or commercial deals linked to their ownership groups that exceeded fair market value.

Although City succeeded in partially overturning aspects of the regulations through an independent arbitration last year, the Premier League pressed ahead with amendments.

The changes were approved in November 2024 by the majority of top-flight clubs, despite strong opposition from City, Newcastle, Aston Villa, and Nottingham Forest.

The tribunal had previously ruled that excluding low-interest shareholder loans from APTs was unlawful, and that certain amendments to strengthen the framework breached competition law.

City subsequently accused the league of being “misleading” and warned of further legal action if new restrictions were rushed through.

Despite this, the Premier League voted through the changes, setting the stage for a costly legal battle. Earlier this year, both sides presented arguments in a two-day hearing over the consequences of the tribunal’s findings.

The settlement brings closure to a dispute that has run for more than a year and cost millions in legal fees.

Meanwhile, Manchester City still await the outcome of a separate disciplinary process, where they face more than 100 charges for alleged breaches of financial rules – accusations the club firmly denies.