At this moment, the new PSR rule is massively impacting the interest-free loans from club shareholders. It will deeply affect Arsenal and other big clubs. According to The Standard, it is being claimed that Arsenal have a dividend loan of £259 million from the shareholders.
On the other hand, Chelsea and Liverpool both have a loan of £146, £71 million respectively. After the final decision, this new modification will be amended into the PSR rule. All 14 Premier League teams will meet in an emergency meeting with the central authority. It is being said that third parties like Etihad will also be present at the meeting. If the new modification comes into place, these massive amount of loans will be of no use to the Premier League giants.
The shareholder loans will not be excluded from the loss of a club.
Fate of Arsenal and other clubs
According to multiple sources, Chelsea, Liverpool, and other clubs will have the chance to vote in this matter. At this moment, nothing is clear about this new modification. Already Manchester City were found guilty under 115 charges of the Financial Fair Play rule back in February of 2023. So, this will be another blow for them.
Premier League giants like Chelsea and Arsenal will be restricted to a fixed transfer budget. Now the question is whether the Premier League clubs will support this decision or not. Since Manchester City breached the FFP rule, Premier League authority is taking these things seriously. There have been some rumors that this year Man City will hear the verdict of their case in a secret mode.
After some days, the verdict will be disclosed to the public. In the previous season, points were deducted from Everton for breaching Financial Fair Play rules. Several media sources are claiming that Manchester City can get relegated from the English Premier League for breaching FFP rules for nine years.
According to PSR rule, English Premier League clubs couldn’t invest after a certain amount. This new ammendment will solidify the Financial Fair Play rule and will restrain big clubs from spending big in the upcoming transfer window.
Although Chelsea found a loophole to avoid this issue, soon Premier League authorities will look into it. Nowadays, we are seeing that the Blues are signing players on long-term contracts. This can effectively reduce the possibility of breaching the FFP rule. But now, other Premier League clubs are protesting against it and calling it a means of cheating.
The bigger picture beyond the case
Earlier people used to think that any team in the English Premier League could win the title. In the 2015-2016 season, newly promoted Leicester City won the Premier League title. They have proven that small teams can also win this tough league. But now this event is becoming unrealistic because of unending citizen dominance.
Although there are several big teams, such as Chelsea, Liverpool, Manchester United, West Ham, Arsenal, and Tottenham Hotspurs, no one is winning the Premier League consecutively. Manchester City has made the Premier League a piece of cake for them. So, this type of heavy spending should be prevented in order to retain the essence of the Premier League. Some punishment is needed for their action.
Big teams like Manchester City buy elite players at any cost. By investing an astronomical amount of money, they can build a world-class squad at any time. On the other hand, the teams that are not financially strong cannot afford such expensive transfers. So, they rely on their academy talents. This uneven spending is causing a disbalance in the English Premier League.
For example, Manchester City has won its fourth consecutive English Premier League title. This information tells us about the negative effect of uneven spending. This is the longest winning streak in the history of the English Premier League. In the entire football community, the English Premier League was considered the toughest European league because all the teams had the ability to defeat one another.
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