Featured Image Credit: Getty
Topics: Premier League, Manchester City
Josh Lawless
Some Premier League clubs could be in danger of breaching Profitability and Sustainability Rules (PSR) following on from Manchester City's triumph in the Associated Party Transaction rules hearing.
While they failed on a number of counts City were successful on many fronts in the case, with a panel agreeing with City's claims that the new rules introduced in January were "unlawful" and violated UK competition law.
In the case, which is separate to the alleged 115 charges hearing, City were victorious in seven of their key arguments and only needed to prove one reason.
The judges on the panel ruled that the Premier League's decision to block commercial deals with Etihad Airways and First Abu Dhabi Bank in 2023 was wrong and unfair.
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A total of eight Premier League clubs, including Manchester United, Arsenal and Liverpool, gave evidence against City.
And the outcome could have huge implications for clubs, with the Premier League now having to change the rules around APT and fair market value.
They must remove some amendments previously made, while a key sticking point is the need to integrate the assessment of Shareholder loans.
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It was concluded that Premier League's decision to allow interest-free
shareholder loans to be exempt from APT rules was unlawful.
At present, according to football finance expert Kieran Maguire, £4.8 billion is the total for Premier League loans to clubs - with £1.9 billion from owners.
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As per Martyn Ziegler from The Times, Everton, Brighton and Arsenal currently have the highest - owing £451 million, £373 million and £259 million respectively.
City had claimed the interest-free loans provided an unfair advantage.
Should the rules by tweaked, it could result in the application of commercial loan rates to the interest-free loans.
And if these are taken into account with profitability and sustainability calculations, it could mean that some clubs are found to have breached PSR rules.
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In the aftermath of the verdict, the Daily Mail is reporting that the Premier League are poised to call for an emergency meeting inviting all 20 clubs to discuss next steps.