In a significant development, Manchester City are reportedly on the verge of securing a monumental £1.5 billion sponsorship agreement spread over the next ten years after concluding a key settlement with the Premier League. The Citizens, as we know, have been entangled in a legal skirmish with English football’s authorities, challenging the Associated Party Transaction (APT) rules, which they contest as “unlawful”.
These APT stipulations are engineered to ensure that any commercial agreements or player transfers between clubs and entities connected to their ownership are conducted at fair market value, preventing inflated club revenues. However, a settlement was reached in September with both Manchester City and the Premier League deciding to terminate legal proceedings. A statement issued by the club underlines that they accept the APT rules as valid after the settlement, marking the end of this protracted dispute.
With the path now cleared, reports from Football Insider suggest that Manchester City are moving forward with a lucrative sponsorship deal with Etihad Airways, a partnership that initially found itself obstructed by the APT rules back in 2023. Esteemed former City financial adviser Stefan Borson elucidates how impactful the deal will be, stressing the significant cumulative value due to indexation over the contract’s duration.
Borson explains that Manchester City already have the Etihad brand prominently on their kits and stadium, indicating that the initial stages of this decade-long deal were in effect even as negotiations with the Premier League unfolded. He highlights how the deal structure incorporated an annual escalator clause, which could see the total value soar to £1.5 billion over the span of ten years, factoring in annual increases and the potential development of intellectual property rights.
As City prepare to consolidate their financial foothold with this all-encompassing agreement, they stand poised to reap substantial rewards, further fortifying their dominance in English football. These developments indeed mark a defining moment in the global football commercial landscape.
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