The link between Arsenal and Belgian club Beveren has apparently yielded documents that implicate Arsenal in some sort of wrongdoing regarding their footballing links with Beveren. Several analysts have tried to spice up their pieces by using words such as “relegation” and “expulsion” (from the Champions League).

Let’s take a closer look at what’s actually going on.

BBC NewsNight have recovered documents that indicate a loan of around 1 million pounds was provided on an interest-free basis to Raole de Waele, who then set up a company called “GOAL”, which bought a controlling stake in Beveren. This is being interpreted by NewsNight as illegal activity and want Arsenal to be investigated by the FA/FIFA.

FIFA have already distanced themselves from this case for now, with Sepp Blatter saying that Arsenal should first submit a report to the FA, and if the FA finds serious discrepancies, it should forward its findings to FIFA.

Let’s first get something straight, even IF Arsenal had somehow bought in a controlling stake at Beveren, they have done nothing illegal. Rule 3, Section U of the Premier League states that Premiership clubs are not allowed to possess shares or provide financial assistance to other clubs in the same division, or to any other club in the Football League. This rule does not encompass clubs abroad.

Second, Arsenal simply provided funds to an individual in order to stabilize a club that the club had just established footballing ties with. The supposedly ’smoking gun’ documents obtained by NewsNight only indicate what Arsenal have already stated, that they DID provide a sum of 1m pounds to de Waele to set up “GOAL”. There is no indication (and will never be proved in court) that Arsenal had a controlling stake. The only tie between Arsenal and Beveren is that of two-way player-exchange. It is interesting to note that while Arsenal may have provided this sum in order to ensure that their only feeder club in the continent at that time remains stable, there is no indication in the documents that Arsenal had even the slightest say in the affairs of Beveren following GOAL’s takeover. It was a one-time interest-free loan made to de Waele.

The logic here is simple. If I were to borrow a million pounds from Citibank, and then go and buy a controlling stake in Mom and Pop Sundae Inc., does that mean Citibank owns a controlling stake in my new acquisition? Of course not.

It is interesting to note that this supposedly sinister link has been made public a day before the FA’s elections, where David Dein is up for another term. His name is the one directly cited in the documents, and this serves its purpose (perhaps the only one) of derailing Dein’s bid.

Second, it’s been quite a while since NewsNight actually broke something of note. Their airtime is being cut by the BBC bosses and this may well be a shot in the dark to salvage some credibility in the face of other excellent investigative programs such as Panorama.

This is a mere storm in a teacup, and the lack of excitement on the part of FIFA and the FA shows as much. Arsenal have still not been contacted by any regulatory authority, and have stated that should any such investigation were to take place, they will fully cooperate.

Relegation? Expulsion from the Champions League? I very much doubt it. Consider the case of a club whose owner (known for laundering money out of Russia into Britain) actually held a stake in another *cough*Chelsea*cough*CSKA Moscow*cough*, and did not get punished.

Sources:

Fifa to probe Arsenal feeder-club deal
NewsNight Investigation Details
Arsenal deny Beveren claim