Arsenal could suffer a major blow as they are expected to be "most impacted" by Manchester City's legal challenge against the Premier League.
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Man City engaged in legal battle with PLVerdict could impact domestic rivals but especially ArsenalPL meeting to be held next weekFollow GOAL on WhatsApp! 🟢📱WHAT HAPPENED?
The legal battle stems from an independent commission’s ruling that the Premier League’s decision to exclude interest-free shareholder loans from associated party transaction (APT) rules was unlawful. This ruling affects how clubs calculate their Profitability and Sustainability Regulations (PSR), which could have major financial consequences for clubs that rely heavily on such loans.
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Clubs like Arsenal, Chelsea, and Liverpool have taken on significant shareholder loans in recent years. Arsenal, in particular, have £258 million in shareholder loans, making them one of the clubs most vulnerable to the ruling. These loans currently account for £62.5m in Arsenal’s PSR calculations. Should the ruling stand, clubs like Arsenal might be forced to apply commercial interest rates to these loans, making them much more expensive and potentially causing financial strain.
WHAT KIERAN MAGUIRE SAID
According to an interview by football finance expert Kieran Maguire to"Arsenal would be the most significantly impacted London club. Chelsea would be slightly impacted. Tottenham not at all – they had borrowed money from ENIC historically, but there is none outstanding at present. I think the big issue for all clubs is realistically the Premier League can only push the ATP rules through if loans are brought into the equation."
DID YOU KNOW?
Chelsea, under the ownership of Todd Boehly and Clearlake Capital, took on £146m in shareholder loans during their first year in charge, while Liverpool have £137m in shareholder loans. Everton lead the Premier League with £451m in shareholder loans, followed by Brighton with £373m, putting them at greater financial risk if commercial interest rates are imposed. Other Premier League clubs with notable shareholder loans include Brentford (£61m) and Crystal Palace (£38m), though their exposure is significantly lower than that of the top three.
