Manchester City and Arsenal’s rivalry on the pitch could be about to spill over into off-the-pitch matters.
The two clubs have developed a deep hatred for each other over the last two years, since the Gunners began threatening the Citizens’ supremacy at the summit of the Premier League.
Arsenal thrashed City 5-1 at the Emirates in February, in a game that saw tensions boil over as Mikel Arteta’s team finally dramatically overcame Pep Guardiola’s outfit.
Now, however, after City’s latest gripe with the Premier League, Arsenal’s rivalry with the north-west club could be about to become more political.
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Man City accuse Premier League of distorting rules in Arsenal’s favour
According to the Times, City have launched a new attack on the Premier League amidst the two institutions’ ongoing legal battle.
The Manchester club have accused the league of distorting the rules in favour of Arsenal, as well as Brighton & Hove Albion, Everton and Leicester City.
The four clubs in question have received shareholder loans (money lent by their owners), which City claim should be treated the same as Associated Party Transactions (APTs) – sponsorship deals with companies linked to club owners.
City argue that these rules ‘discriminate’, and that the rules should be amended so that ATPs and shareholder loans are viewed as the same.
The Premier League champions claim that the current stipulations ‘fail to meet the requirements of transparency, objectivity, precision and proportionality … and are liable to distort competition.’
The premise of the argument from the Etihad club is that clubs who utilise shareholder loans are benefitting from an unlawful exemption and this must be changed.
City have also disputed the 50-day grace period given to clubs to convert shareholder loans into equity spending, whilst lamenting the idea that shareholder loans aren’t assessed for fair market value in the way that ATPs are.
When did Arsenal benefit from a shareholder loan?
Arsenal received shareholder loans worth approximately £259 million in the 2022/23 season, which City claim is an example of ‘differential treatment’.
City claim that the rule changes “do not eliminate, but on the contrary, perpetuate the discriminatory and distortive treatment previously found by the tribunal.”
They add on the matter: “This continued preferential and discriminatory treatment of shareholder loans has the object and/or effect of distorting economic competition between member clubs on affected markets.”
City also believe that independent experts should have been consulted when assessing the free market value of shareholder loans, rather than the Premier League themselves conducting these assessments.
This issue remains separate from the 130 charges brought against City for alleged breaches of financial regulations.
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