The Premier League has reached a settlement with Manchester City ahead of an October trial into Associated Party Transaction (APT) rules.
The ruling, which is not related to the 115 charges the Premier League have brought against Man City for alleged financial rule breaches, governed commercial deals and had initially blocked the club's renewed sponsorship with Etihad Airlines as it was not deemed to be of "fair market value".
Man City launched a legal challenge in response and a tribunal sided with the club over the Premier League, deeming the rules "void and unenforceable".
Instead of rewriting the regulations, the Premier League decided to tweak them which promoted Man City to take further action and the same panel was set to hear the case next month.
But that trial has now been scrapped after the Premier League and the Citizens reached a settlement on the matter, with the club accepting the rules are valid and binding.
A statement on Manchester City's official website 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.
"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.
"It has been agreed that neither the Premier League nor the club will be making any further comment about the matter."
The Premier League introduced APTs in 2021 in an attempt to clamp down on clubs signing inflated sponsorship deals with parties linked to their ownerships.
Etihad, which is the state airline of Abu Dhabi and the country of which Sheikh Mansour is vice-president, first became City's sponsors in 2011 when the club penned a 10-year, £400 million agreement.
In light of the settlement, it's now expected Man City will press ahead with a new Etihad deal.
