In a major ruling on Associated Party Transactions (APT), Manchester City have secured a legal win that could have ripple effects across the Premier League.
But what does this mean for rivals like Liverpool and Arsenal? Liverpool fans, don’t panic just yet — according to football expert David Lynch, the impact on the Reds might not be as big as some fear.
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Liverpool not worried about City’s legal win
Earlier this week, both Manchester City and the Premier League claimed partial victories in their ongoing legal battle over APT rules. These rules aim to ensure that sponsorships and financial deals between clubs and their owners’ companies are fair and market-driven.
Man City challenged a rule that blocked their sponsorship deals with Etihad and First Abu Dhabi Bank, and successfully argued that club loans from owners and shareholders should also be governed by APT rules. This could mean tighter regulations for clubs who rely on owner loans to fund projects.
🚨🔵 Manchester City statement confirm legal win over Premier League after the governing commercial deals between clubs and related companies were declared unlawful. pic.twitter.com/ThWGMequZT
— Fabrizio Romano (@FabrizioRomano) October 7, 2024
But Lynch believes Liverpool have little to worry about. “Liverpool aren’t massively dependent on loans from owners,” Lynch explained. He pointed out that apart from one outstanding loan for the Anfield Main Stand, which was interest-free, Liverpool aren’t relying heavily on Fenway Sports Group (FSG) for borrowing.
He continued, “Any future loans would likely include interest if these rule changes come into effect, but FSG isn’t big on taking out loans to begin with.”
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How will this impact Arsenal and Others?
While Liverpool seem to be in the clear, Arsenal might face a more significant challenge. Arsenal recently benefitted from a £259m interest-free loan from their owners, Kroenke Sports and Entertainment. Other clubs like Brighton (£373m) and Everton (£451m) have also enjoyed interest-free loans from their parent groups.
If new rules are enforced, clubs like Arsenal could find themselves paying interest on future loans, potentially making it harder to balance the books.
Despite City’s victory regarding shareholder loans, Lynch also noted that the Premier League scored some points, too. The ruling reinforced that APT rules are necessary to maintain financial sustainability across the league.
“City didn’t get everything they wanted,” Lynch said. “While they managed to secure a win on the shareholder loan issue, they failed to convince the court that the APT rules were unfair overall.”
MORE: All the latest Arsenal news | Premier League schedule for 2024/25 | Latest Premier League top scorer rankings
What about the 115 charges?
Lynch believes this ruling doesn’t help City’s ongoing case regarding the 115 financial charges against them. “This wasn’t a massive win for City in terms of their broader legal battles,” he explained. “In fact, it doesn’t really help them with the bigger issue of their 115 charges.”
For Liverpool fans, there’s no need to worry too much. While this ruling may affect other clubs who rely heavily on owner loans, it’s not expected to shake things up at Anfield. With the Reds sitting one point ahead of City in the Premier League, it’s full steam ahead for Arne Slot’s men.
Man City may have dodged a bullet in court, but it’s clear that the battle both on and off the pitch is far from over.
