Arsenal have been fined £60,000 and warned over their future conduct after the Football Association decided they breached agent regulations when they signed Calum Chambers from Southampton.
A report in the Evening Standard claims Alan Middleton, who helped to broker the £15million transfer in 2014, did not do the necessary checks on a third party named Philip Ercolano. He has been fined £30,000 and suspended for three months as a result.
Under FA rules, Arsenal are also obliged to make sure all parties are authorised to play a role in every transfer deal. Ercolano's role in this deal has been described as "significant" by the FA despite not having the appropriate license.
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The Gunners have claimed they were not aware Ercolano was unauthorised to act as an intermediary, claiming the transfer with their Premier League counterparts was done in good faith. But as they have now found out, ignorance is not a legitimate form of defence.
The FA stated: "Arsenal have been fined £60,000 and warned as to their future conduct after breaching The FA's Football Agent Regulations.
"The charge was in relation to the transfer of Calum Chambers from Southampton to Arsenal on July 26, 2014. Arsenal admitted part of the breach but denied another, which was found not proven following an Independent Regulatory Commission.
"The breaches in this case were serious. They were committed in the context of a high value and high profile transfer, generating significant transfer and agency fees.
"Such transfers are conducted in the full glare of the media and attract greater attention and scrutiny."
A statement from Arsenal read: 'We acted in good faith throughout in this transfer and had no reason to believe that the player's representative was not authorised to be involved in the transfer negotiations.
"The FA fully recognised that there was no intention to mislead on Arsenal's part. We have improved our procedures to prevent this happening again."