While the Premier League has suggested that only future loans will be considered for Profit and Sustainability purposes, some believe that applying the rules retroactively is necessary. This stance could increase tensions between clubs like Manchester City and the league officials. Regarding shareholder loans, top-flight clubs, including Nottingham Forest, have been instructed to disclose any loans from shareholders or those converted to equity from the past three years.
Simon Leaf, a sports law specialist from Mishcon de Reya, expressed his concerns.
Simon Leaf said, “There’s a danger that the league may descend into civil war if a workable and sensible solution to the present issues are not found. It’s a real mess. The only way to fix it, I suspect, is for those loans to be considered retrospectively – and that wouldn’t be popular with a number of clubs.”
Last season, clubs like Nottingham Forest and Everton incurred penalties, such as points deductions, for breaching the Premier League’s spending rules outlined by Profit and Sustainability Regulations (PSR). Despite an unfavorable ruling on a specific regulation, it was declared unlawful, and Manchester City faced substantial legal costs.
Initially, it was suggested that adjustments might be rapidly implemented for an emergency meeting. City have been criticized for being aggressive in their letter to the 19 other Premier League clubs, but their point that this has to be done with proper legal advice is a valid one.
