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

The outcome of Manchester City's historic affair with the Premier League could now put title rivals Arsenal at risk of punishment. The Premier League champions have had a selection of their complaints upheld, including those relating to the rules on associated party transactions (APT).

PTAs are commercial agreements involving clubs and companies with which they are already closely associated.

Restrictions were introduced in December 2021, shortly after Newcastle was taken over by Saudi Arabia.

Lawyers for the Premier League champions have successfully argued that shareholder loans should not be excluded from the scope of the APT rules. Inadvertently, this means that top clubs with high borrowing levels now risk breaching profitability and sustainability rules.

According to the Times, Arsenal borrowed more than £200 million, made up entirely of shareholder loans. Mikel Arteta signed David Raya, Riccardo Calafiori and Mikel Merino this summer for a combined £91million.

This followed the summer of 2023, where almost £200million was spent on new signings, with the Spaniard well-backed by his club in their bid to secure a first Premier League title since 2004.

But these new developments could now cause problems for Stan Kroenke and co, and potentially force the club to sell in the future in order to comply with regulations.

City have since released a statement saying: “The club has successfully argued that the associated party transaction (APT) rules have been found to be unlawful and that the Premier League's decisions on two specific MCFC sponsorship deals have been overturned .

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

The Premier League also claimed victory, saying the court had rejected the majority of Manchester City's challenges. League leaders said the decisions “endorsed the general objectives, framework and decision-making process of the APT system.”

In this arbitration process, Chelsea, Newcastle and Everton all acted as witnesses on behalf of City. Witnesses from the Premier League 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 matter relating to City's 115 alleged breaches of the Premier League's financial rules. The result of this hearing is not expected before spring 2025.