PwC replaces Deloitte as Linklaters auditor after Arsenal lawsuit

PwC replaces Deloitte as Linklaters auditor after Arsenal lawsuit

The conflict began when Arsenal stakeholder Lady Nina Bracewell-Smith filed a professional negligence claim against the Big Four and magic circle firms, claiming their advice caused losses of £10m

PwC replaces Deloitte as Linklaters auditor after Arsenal lawsuit

Deloitte has resigned as auditor of Linklaters after the firms became embroiled in a tax advice row over the sale of a major stake of Arsenal.

PwC has been selected to take over as the magic circle firm’s auditor after Deloitte stepped away due to the conflict of interest.

Friction between Deloitte and Linklaters began last year when major Arsenal stakeholder Lady Nina Bracewell-Smith filed a lawsuit against both firms for “professional negligence”, after she employed their services to advise on selling her 15.9% share of the club to majority shareholder Stan Kroenke in 2011.

Bracewell-Smith accused the firms of negligent advice which led to loan notes being sited in the UK rather than overseas, making her liable for capital gains tax in the UK and leading to losses of £10m. She added that the error forced her to move to Monaco at the cost of £1.25m.

Both Deloitte and Linklaters pointed fingers at one another in court documents at the time. Linklaters said that responsibility of the tax aspects of the deal fell to Deloitte and Bracewell-Smith, while Deloitte countered that it did not know where the loan notes would be sited and “did not have any duty to check.”

Deloitte added that it was Linklaters responsibility as “they had been retained to advise her on the legal documentation relating to the sale of her shares.”

In now deleted tweets Bracewell-Smith said she “deeply” regretted selling her shares to Kroenke, which helped him secure a 63% majority.

Related Articles

FRC strikes out at PwC's BHS audit quality following leaked report

Audit FRC strikes out at PwC's BHS audit quality following leaked report

6h Lucy Skoulding, Reporter
Monthly news roundup with Lucy Skoulding

Audit Monthly news roundup with Lucy Skoulding

1d Lucy Skoulding, Reporter
FRC data on Big Four audits may highlight need for industry overhaul

Audit FRC data on Big Four audits may highlight need for industry overhaul

1w Lucy Skoulding, Reporter
Ex-KPMG auditor faces six charges over Gupta wedding scandal

Audit Ex-KPMG auditor faces six charges over Gupta wedding scandal

1w Lucy Skoulding, Reporter
BDO maintains lead in AIM auditor rankings

Audit BDO maintains lead in AIM auditor rankings

2w Lucy Skoulding, Reporter
Another accounting error for BT Group as £500m pension deficit mistake revealed

Audit Another accounting error for BT Group as £500m pension deficit mistake revealed

2w Lucy Skoulding, Reporter
FRC finds audit failures in UK pension scheme reporting

Audit FRC finds audit failures in UK pension scheme reporting

3w Lucy Skoulding, Reporter
KPMG South Africa hit hard as more clients sever ties following audit scandals

Audit KPMG South Africa hit hard as more clients sever ties following audit scandals

3w Lucy Skoulding, Reporter