Arsenal’s January transfer spending restrictions explained amid points deduction threat

Arsenal are facing a January transfer window with a huge level of need with a restriction to what they can actually do. Many supporters often cry out that with an owner, Stan Kroenke, worth billions how is it that the club are unable to spend more money, especially when the likes of Chelsea have been running riot with spending and don’t look to be slowing down?

You might remember a number of fan protests down the years like ‘You Spend, We Spend’ and a smattering of ‘Kroenke Out’ protests too.They’ve certainly disappeared during Mikel Arteta’s spell at the club with the team investing heavily to completely overhaul the squad and look to compete for the Premier League title in successive seasons.

However, frustrations amid news that the club will struggle to spend this winter are at a recent high. The main blockade that people have been hearing about is not necessarily the usual Financial Fair Play (FFP) talk but instead, something called the Profit and Sustainability (P&S) rules.

They are similar in their motive to try and limit the spending of the biggest and richest clubs to try and attempt to make the leagues as competitive as possible but whilst FFP was a UEFA initiative the P&S is set up by the Premier League.

In short, the P&S dictate that Premier League clubs are allowed a loss of £5million a year. This can be boosted by £30million of secure funding which is either an equity contribution or an irrevocable commitment to make a payment for shares as explained by football finance expert Kieran Maguire.

Those hoping a loan from the club’s owners would count toward this are mistaken. So the “dipping into Kroenke’s pockets” appeals fall not only on deaf ears but those listening should know now that it's not even feasible to