Man City win legal battle against Premier League's 'unlawful' sponsorship rules as English top-flight fears huge compensation claims from clubs

The Premier League was handed a huge blow after City won their court case disputing the division's sponsorship rules over the last three years, which have been declared null and void. A tribunal has sided in favour of the champions, who raised the case in 2023 when the league blocked deals with Etihad Airways and First Abu Dhabi Bank.

As well as City's case being successful, all Associated Party Transactions (APT) between 2021 and 2024 can now be disputed, raising huge fears that other clubs in England's top flight will seek compensation for any deals that were blocked or reduced in value during that time.

Part of the 18-page final award read: "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."

City are also disputing the amended APT rules that were voted through in November, with the panel set to decide on that in the near future. Another positive outcome for Pep Guardiola's side could throw the league into chaos.

The Premier League may now have to front City's huge £20 million ($25m) bill, alongside any other successful claims. The tribunal is unrelated to the 115 charges against City over alleged breaches of financial rules. The ruling could allow teams like City and Newcastle to strike much larger deals with sponsors.