Legal proceedings between the Premier League and Manchester City are now underway.
Manchester City have scored one early victory in this legal battle.
As reported by The Telegraph, it has now been deemed: “Unlawful for so-called ‘shareholder loans’ to be excluded from the world’s richest league’s profit and sustainability rules (PSR).”
However, this ruling will only apply to future deals, meaning that Manchester City have avoided any immediate sanctions. This is good news for Arsenal, too.
The Gunners have received £259 million in outstanding loans from their owner Stan Kroenke.
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Arsenal owner Stan Kroenke avoids major hit
As per the aforementioned report, Arsenal will now: “Escape immediate liability for millions in interest on loans from their owners.” This does mean, though, that from now on the Gunners will be: “Beholden to commercial interest rates on such loans under those rules.”
Kroenke will be grateful that no retrospective punishments will be enforced, else Arsenal would suffer due to the loans he has already provided. Clearly, the Arsenal owner will have to change how he operates going forward.
In general, the financial health of the North London club is positive. Arsenal have no major PSR concerns, and have managed to conduct their transfer business fairly and within the rules.
Meanwhile, Kroenke, and his son Josh, have seen their popularity at the Emirates Stadium grow in recent seasons, as they have backed Mikel Arteta to build a side capable of seriously competing for the Premier League title.
Arsenal focusing on Manchester City competition
Whilst Manchester City’s legal battle with the Premier League will rumble on in the background, the Gunners will be fully focussed on usurping the reigning champions on the pitch.
Ally McCoist has backed Arsenal to win the Premier League title this season, but most would likely still have the Cityzens down as favourites to retain their crown.
However, Manchester City’s loss of Rodri to injury will worry them. There have already been signs of his absence taking a toll on their performances.
Arteta must sense that now is Arsenal’s time. His side must give everything they have to go all the way this season, fulled by the pain of having finished as runners up in each of the last two campaigns.
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