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Everton and Liverpool reportedly do not need to worry about paying interest on shareholder loans that have already been previously agreed.

The Premier League has reportedly handed Liverpool and Everton a financial boost(Image: Joe Prior/Visionhaus via Getty Images)

Everton and Liverpool have reportedly been told they are not liable to pay interest on the loans received from their owners that date before the forthcoming changes to Associated Party Transaction rules. On Monday, the Premier League was found to have unlawfully blocked two sponsorship deals involving Manchester City.

The judgement panel accepted the club’s argument that interest-free shareholder loans were unjustly excluded from Profit & Sustainability calculations. Going forward, such loans will need to be assessed to ensure they are of ‘fair market value’, which will incur interest costs.

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The verdict of the case - which is separate from the 115-charge legal battle involving City - means these finance regulations are set to be redrafted in the coming weeks. However, the Telegraph claims that the Premier League has confirmed its clubs will only be liable for paying interest on sponsorship deals agreed after the new regulations have been established.

The original rules - which City said were discriminatory - had been brought in on the back of the Saudi-led takeover of Newcastle United in 2021. The regulations outlined that deals involving entities connected with the owner of a club could be assessed to ensure fees were not being inflated and thereby illicitly giving more headspace within spending rules.

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The panel underlined that it was necessary for APT rules to be in place to prevent an imbalance of competition. However, the notion for shareholder loans to be now assessed and thus incur interest is bound to impact lower-financed clubs more greatly than those with richer owners.

The Telegraph report moots that Liverpool currently owe Fenway Sports Group £137million in loans, while Everton - set to be taken over by the Friedkin Group - supposedly owe a staggering £451m, the most of any Premier League club. The combined total between the two clubs is £588m - and they will now be spared an instant hit on the interest of these huge amount.

It puts Brighton second with cumulative loans of £373m with Arsenal (£259m) and Chelsea (£146m) joining Liverpool in the top five. Manchester United (in 2024), Tottenham, Man City, West Ham, Newcastle and Southampton are said to not hold any shareholder loans.

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In all, it says around £4billion is owed in shareholder loans by Premier League clubs. The apparent decision by the Premier League that it will not backdate interest costs on existing shareholder loans will offer more security for Premier League outfits and avoids a potential mass sanctioning of many of its clubs.