God

Arsenal are facing an investigation by UEFA over a secret loan agreement made between the club and Belgium feeder club KSK Beveren.

A police investigation in Belgium has concluded that Arsenal made a secret payment of over £1m.

Fifa are investigating whether Arsenal have breached rules governing fair play and conflict of interest.

Beveren have strangely refused to tell investigators where the cash had come from, prompting an investigation into the club's finances which eventually led to the Marble Halls.

Christian du Four, the Investigating Magistrate in the Flemish town of Dendermonde, told BBC Newsnight: "A company with no name wanted to invest a million pounds in the club. We thought it rather bizarre."

Arsenal initially denied any involvement with Beveren's finances, but have had to admit that they have indeed loaned money to the Belgium club.

An Arsenal spokesman said: "Arsenal confirms that it has never owned, directly or indirectly, any shares in Beveren or had any power whatsoever to influence its management or administration.

"It did in 2001 provide funds of €1,570,703 by way of loan to a member of the consortium to assist in stabilising the finances of Beveren."

Reading from his investigation, Mr Du Four said: "Jean Marc Guillou who is the manager of Beveren has very close contacts with Arsène Wenger the coach of Arsenal and that is why they went ahead with the contract."

A contract between Arsenal and Beveren also revealed that Arsenal would set up a company called Goal that would have a significant stake in KSK Beveren.

Du Four then highlighted one contract signed by Arsenal Vice-Chairman David Dein. The contract (Document B) shows Dein agreeing to advance 12 million Belgian francs (around £200,000) on behalf of Arsenal Football Club in an interest free loan to an associate of his called Raoul de Waele.

The loan was to establish a company called Goal which would take over control of Beveren football club.

The investigation will determine if Arsenal had a controlling influence in the club's affairs.

If Arsenal secretly controlled another club, especially one such as Beveren who they bought Emmanuel Eboue from, they could be in breach of FIFA rules and could be heavily fined or even thrown out of the Champions League.

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God

Arsenal have issued the following statement following allegations regarding illegal payments to Belgium club KSK Beveren.

Arsenal Football Club is aware that BBC Newsnight is carrying a story this evening purporting to describe Arsenal's relationship with Belgian football club, Beveren.

Arsenal does not normally make public its agreements with third parties. However, Arsenal can confirm that it has had a technical relationship with Beveren since 2001. This relationship has a number of benefits to both clubs such as providing a platform to share coaching methods and techniques as well as facilitating the option of players being loaned between the clubs. For example, during the course of the relationship, Arsenal players David Grondin, Liam Chilvers, John Halls and Graham Stack all spent successful loan periods at Beveren as did Emmanuel Eboue, who played in a number of trial matches with Arsenal whilst contracted to Beveren. Such was the latter player's success, Arsenal subsequently signed Eboue on a permanent basis.

In addition, Arsenal confirms that it has never owned, directly or indirectly, any shares in Beveren or had any power whatsoever to influence its management or administration. It did in 2001 provide funds of 1,570,703 Euros by way of loan to a member of the consortium to assist in stabilising the finances of Beveren.

At no time has anyone at Arsenal been contacted by any regulatory or investigatory body with respect to its relationship with Beveren. Arsenal and all its staff have acted properly throughout, in accordance with all applicable rules and regulations, and in the best interests of Beveren, Arsenal and the broader footballing community.

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Pozzerman

I just heard about this over here in the US and I hope that none of it is true. I dont think that they will get expelled from the Champs League though. I wonder if Spurs would get the spot if Arsenal were thrown out though. I am pretty confident that it wont happen though.