Man City 115 charges latest after fresh Premier League prediction and Arsenal verdict given

Man City 115 charges latest after fresh Premier League prediction and Arsenal verdict given

Manchester City’s legal battle with the Premier League over financial rules could have major knock-on effects for Liverpool's title rivals Arsenal

Man City face 115 charges over alleged financial rule breaches, which they deny (Image: Liverpool FC via Getty Images )

Football finance expert Kieran Maguire believes Manchester City have the 'upper hand' in their battle with the Premier League regarding their 115 charges legal case.

The Premier League charged City with an alleged 115 breaches of the Premier League's Financial Fair Play Rules over a nine year period, with the likes of Liverpool, Arsenal, Manchester United and the rest of the top flight keeping a close eye on proceedings.

‌

Pep Guardiola's side have strongly denied any wrongdoing and are awaiting a verdict following the independent hearing last year. The City boss suggested that his club would learn the outcome in March, though two months on, there's still no outcome from the hearing and a possible timeline remains vague.

‌

Recent reports claim the legal battle will rumble on into next season and potentially the years to come, with City frustrated by the cloud hanging over the club.

In a separate hearing, Man City claimed an early victory when they challenged the Premier League's Associated Party Transaction rules, which ensures clubs pay fair market value in deals with businesses linked to their owners.

They argued that, in relation to the Profit and Sustainability Rules, financial loans that clubs receive from shareholders should be treated as a subsidy and should therefore have a face-value interest rate applied for PSR.

Article continues below

After claiming victory in that case, City now reportedly want the rules applied retrospectively, which would directly impact Liverpool's title rivals Arsenal who have the highest shareholder loans in the top flight at £324million.

If City get their way, Arsenal's financial position might look worse when past loans are re-evaluated under the new rules — even though they weren't breaking any rules at the time.

Arsenal will have been following Man City's hearing closely having finished runners-up to them twice in the period in question (Image: Arsenal FC )

‌

In relation to this, football finance lecturer at the University of Liverpool, Maguire, told TBR Football: “Arsenal had a net interest cost of £5m in 2022 and £6m in 2023. The Kroenke loans aren’t that critical in the overall picture, so I don’t see this is as being an issue.

“There is a broader issue in the sense that City and Arsenal are the best of enemies. It’s very, very personal between the two clubs. This is an opportunity to score points against Arsenal and protect their own interests as far as City are concerned.

"I think we will see some sort of transitional rule with the APTs. We have already seen Brighton’s loans from Tony Bloom have been converted into something that is between shares and debt.

‌

“There will be discussions taking place between clubs, lawyers and accountants as to how existing loans can be reclassified as equity. Therefore, that will assist things going forward.

"I think, based on historical evidence, that City have got the upper hand over the Premier League. Nick DeMarco thinks it will be a score draw where the Premier League will win some of the 115 charges but City will have a far stronger case in others.”

Despite the possible punishments for City if they were to be found guilty including points deductions, fines and even relegation, the former Premier League champions are prepping for a big-spend summer transfer window as revealed by The i Paper.

Article continues below

Guardiola's side remain confident of winning the case and are planning a summer rebuild with the likes of Kevin De Bruyne leaving after this season.

Click here to read article