APTs are commercial deals involving clubs and companies to which they already have a close association.
Raheem Sterling warning looms large over Mikel Arteta after Southampton disappointment
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.
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Arsenal owner Stan Kroenke (right) may have to be careful of avoiding PSR breaches
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.”
Raheem Sterling warning looms large over Mikel Arteta after Southampton disappointment
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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.
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