Arsenal 'in danger' as new Premier League rule puts Gunners at risk of breaches

The outcome of Manchester City’s landmark case with the Premier League could now put title rivals Arsenal at risk of facing punishment. The Premier League champions had a selection of their complaints upheld, most critically the ones relating to associated party transaction (APT) rules.

APTs are commercial deals involving clubs and companies to which they already have a close association.

Restrictions were introduced in December 2021, shortly after a Saudi-led takeover of Newcastle.

Lawyers on behalf of the Premier League champions successfully argued that shareholder loans should not be excluded from the scope of the APT rules. Inadvertently, it means top-flight clubs with high levels of borrowing are now in danger of breaching Profitability and Sustainability Rules.

Per The Times, Arsenal have borrowed more than £200million made up entirely of shareholder loans. Mikel Arteta brought in David Raya, Riccardo Calafiori, and Mikel Merino this summer for a combined total of £91m.

That followed the summer of 2023 where almost £200m was splashed out on new signings, with the Spaniard well backed by his club in their bid to land a first Premier League title since 2004.

But these new developments could now spell trouble for Stan Kroenke and co, and potentially leave the club needing to sell in future in order to comply with regulations.

City have since released a statement saying: “The club has succeeded with its claim that the Associated Party Transaction (APT) rules have been found to be unlawful and the Premier League’s decisions on two specific MCFC sponsorship transactions have been set aside.

“The Tribunal found that both the original APT rules and the current, (amended) APT Rules violate UK competition law and violate the requirements of procedural fairness. The Premier League was found to have abused its dominant position.”

The Premier League also claimed victory, saying the tribunal rejected the majority of Manchester City’s challenges. League bosses have claimed the rulings “endorsed the overall objectives, framework and decision-making of the APT system.”

In this arbitration process, Chelsea, Newcastle and Everton all acted as witnesses on behalf of City. Premier League witnesses included Manchester United, Liverpool, Arsenal, Tottenham, Brighton and West Ham, while Brentford, Bournemouth, Fulham and Wolves wrote letters In support of the current rules.

The tribunal, however, is entirely separate from the case over City’s 115 alleged breaches of Premier League financial rules. An outcome from that hearing is not expected until the spring of 2025.