City launch legal action against the Premier League | Club & PL reach settlement | Proceedings dropped (p1147)

The big revelation in all of this is that Everton, Brighton and Arsenal are massively leveraged by interest-free loans. This had not been in the conversation prior to now. Clearly the principle of fair market value will remain in place, so the imposition of a commercial loan rate charged to the P&L account of these teams is inevitable. This is seismic, make no mistake about it. But the fact it was allowed to happen in the first place speaks hugely to City's suggestion of a tyrannical majority.

Matt Lawton: "Crucially, the panel deemed the rules to be unlawful, and in breach of competition law “by object”, a serious and damning infringement akin to price-fixing by cartel members."

Oof!
 
bridgeno1 said:
From an Arsenal perspective this isn't great for us. The main ruling I see from this that impacts us is the fact that club owners can't give the club loans without having fair market value interest charged.

At present the Kroenkes loan the club £250m and as football is a risky business I'd say fair market value interest rates are around 8% so that's an extra £20m that needs to be factored into FFP moving forward.
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You're fucked, unless the current (illegal) rules are changed wholesale and not just minor alterations that the PL are trying to claim. Be interesting to see if the redshirt clubs will start falling out over this!
 
John Wayne said:
The big revelation in all of this is that Everton, Brighton and Arsenal are massively leveraged by interest-free loans. This had not been in the conversation prior to now. Clearly the principle of fair market value will remain in place, so the imposition of a commercial loan rate charged to the P&L account of these teams is inevitable. This is seismic, make no mistake about it. But the fact it was allowed to happen in the first place speaks hugely to City's suggestion of a tyrannical majority.

Matt Lawton: "Crucially, the panel deemed the rules to be unlawful, and in breach of competition law “by object”, a serious and damning infringement akin to price-fixing by cartel members."

Oof!
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Makes sense why bloom was shooting his mouth off now. Cheat
 
And in the blink of an eye all of sudden this is being reported as it not being a good look for the Premier league.
Oh really?
It's funny that as I didn't hear that being said once when the Premier League decided to throw the 115 bollocks at their reigning champions and most successful team in the last decade plus.

We need to sue the Premier league, Masters and his cronies and claim compensation for loss of earnings from missed sponsorship deals.
 
IcriedwhenTueartleft said:
Interesting to see the clubs who sided with the PL....Arse, Utd, Ted Bundypool, WHU (!), Brentford, Wolves, Bournemouth and Fulham....presumably all the clubs who were benefiting from interest-free shareholder loans to the clubs?
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100% - just read a table of all the PL clubs, and this bunch of wankers were the main beneficiaries of interest-free shareholder loans.
 
bridgeno1 said:
Yeah but it isn't retrospectively applied. So they'll have to factor in an extra £20m for the loans or so however in reality what you'll see is a massive Walmart sponsorship deal at whatever value the Kroenkes can get away with so I don't think it affects Arsenal in reality as that will just replace the shareholder loans. It's the same money basically.

Smaller clubs without super wealthy owners who own other massive companies may feel it more though.
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It won't be applied at all, retrospectively or otherwise. Unless the majority of PL votes for it, of course. The panel can't make the PL amend it's rules, they bow need to go rework them, to the recommendation, then get them voted through. Can't see that happening. This could go on for a while.
 
ancoats said:
Big Statement

The Premier League blocked a major sponsorship deal that Manchester City had lined up WOW This is now deemed unlawful and wrong,

Manchester City are going to have them over a barrel are in the barrel and just about to go over Niagra Falls…!
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They are inside the barrel and last seen heading over Niagra Falls..!
 
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