Manchester City has emailed other clubs on how Premier League is 'Misleading' them

Manchester City claims in a letter to the other 19 premier league teams that the Premier League is "misleading" them. However, the defending champions are doubtful to win over many opponents given that a number of them were drawn into their court battle over sponsorship rules.

Following an arbitration panel's decision on Monday afternoon that certain parts of the current regulations are illegal but that Associated Party Transaction restrictions are an essential component of governance, both Manchester City and the league declared victory.

However, because of a disagreement over loans from shareholders and owners, the panel's decision—which was sent to the clubs in a 175-page report—has drawn Arsenal and Brighton into the story, among other clubs.

Three retired judges said in a statement about the certain section of the findings as they said, "MCFC alleges that there is a potential for distortion in this market by reason of the fact that the APT Rules do not apply to shareholder loans and will therefore incentivise shareholders to make loans as opposed to purchasing new equity, which favours clubs with better access to loans from shareholders.”

The statement added that, “Those incentives could result in a material distortion, given that £1.5bn out of £4bn total borrowings (some 37%) are made to clubs by shareholders, including all of Arsenal’s borrowing and almost all of Brighton's borrowing."

What new changes are going to be expected in the coming time?

It has been suggested that in order for shareholders to lend money to their clubs in the future, the interest rates they charge should be equivalent to those of ordinary lenders, which are currently between 8 and 10%. This will have a significant impact on the clubs' standing with regard to Profit and Sustainability Rules.

But, as there doesn't seem to be any precedent for new regulations to be imposed retroactively, loans that have already been agreed upon are probably going to be unchanged. Therefore, Arsenal is more likely to be prevented from obtaining additional loans from the club's owners rather than having to pay interest on the pre-existing borrowing, which was £259 million as of the end of 2023.