Stefan Borson: Arsenal forced into behind-the-scenes change after Man City twist
Arsenal owner Stan Kroenke will likely be forced to change the way he invests in the club following the ruling in Manchester City’s associated party... The post Stefan Borson: Arsenal forced into behind-the-scenes change after Man City twist appeared first on Football Insider.
Arsenal owner Stan Kroenke will likely be forced to change the way he invests in the club following the ruling in Manchester City’s associated party transactions (APT) case.
That is the view of former Man City financial adviser Stefan Borson, who exclusively told Football Insider the American businessman will probably have to start putting money into the north London giants as equity as opposed to debt.
Man City took legal action against the Premier League regarding the APT rules currently in place at an arbitration hearing in June.
Both sides have claimed a victory in the case after the arbitration panel’s decision was published on 7 October, where two aspects of the rules were deemed to be unlawful.
The commission ruled that shareholder loans shouldn’t be excluded from the APT rules and the Premier League will now integrate the assessment of those loans into the regulations.
Arsenal owe Kroenke £259million – the third-highest total in the top flight behind Everton’s £451million and Brighton’s £373million.
Arsenal owner Stan Kroenke faces ‘irritation’ after Man City ruling
Borson suggested it will be an “irritation” for Kroenke to restructure the way he invests in the club.
He told Football Insider: “Even for Arsenal, who have got a shareholder loan worth more than £200million, I don’t see it going to be a particular issue for them, although it may be a bit of an irritation.
“It also has to be said that it would clearly change the way that they structure their investment in the club, otherwise, they would have done it as an equity investment in the first place.
“Clearly, they wanted to do it as debt, rather than as equity.
“This will probably force them to go down the route of doing it as equity, so I guess you could say that’s an irritation for them because they must have had a rationale for wanting to do it the way that they have done it.”
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The post Stefan Borson: Arsenal forced into behind-the-scenes change after Man City twist appeared first on Football Insider.
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