A key financial backer of Manchester City has concluded its relationship with the team after more than a decade.
City will be seeking a new financial collaborator of significance because the Japanese auto manufacturer, Nissan, has decided to end its time working alongside the famous soccer club.
This action comes in the wake of a recent understanding reached between Man City and the Premier League. Earlier in the month, the two parties issued a joint announcement, confirming they had come to a resolution concerning the highly contested Associated Party Transaction (APT) regulations.
What was Manchester City’s APT dispute with the Premier League about?
City originally pursued legal action contesting the Premier League’s APT rules. These rules are designed to guarantee that any commercial agreements involving companies connected to the club’s owners are valued at a fair and accurate market rate. City’s legal argument asserted that these rules stifled competition and were unlawful.
Instead of undertaking another legal proceeding, which would be separate from the ongoing situation regarding City’s 115 alleged violations, both the Premier League and Man City decided to resolve the matter with an agreement.
As a condition of the agreement, City acknowledged that the current, updated APT rules are legitimate and have legal force.
Back in 2023, the Premier League stepped in to prevent a new proposed sponsorship contract between Manchester City and Etihad Airways. Etihad Airways functions as the primary airline for the United Arab Emirates (UAE). The club, Manchester City, has the Abu Dhabi United Group as its majority owner; this is a private investment firm under the control of the Royal Family of the UAE.
Now that City has settled with the Premier League, they are free to proceed with the previously mentioned sponsorship arrangement with Etihad Airways, in addition to pursuing deals with other firms linked to the UAE, assuming they adhere to the revised APT regulations.
According to Nikkei Asia, Nissan has terminated its association with City Football Group (CFG), which is the listed owner of Man City and a subsidiary of the Abu Dhabi United Group.
The decision to discontinue financial support of City is apparently caused by ‘poor financial results’.
In 2014, Nissan became CFG’s first ‘global partner’. Since then, the Nissan brand has been prominently displayed at the Etihad Stadium and across the club’s digital platforms.
The specific financial details of the arrangement with Nissan have never been made public. However, in 2014, it was estimated to contribute £20 million to City’s revenues. This amount most likely grew when a new contract was created in 2019.
City currently lists 35 ‘global partners’ and for the year ending June 30, 2024, it generated £344.7 million in commercial revenue.
