Clubs to vote for TOUGHER rules on related-party commercial deals

Posted on : 11/09/2023
Clubs to vote for TOUGHER rules on related-party commercial deals
Soccer 

Premier League clubs to vote for TOUGHER rules on related-party commercial deals this month, in move that could restrict Saudi-backed Newcastle’s ability to increase their commercial revenue

  • There is set to be a Premier League shareholder meeting later this month
  • Clubs are set to vote for tougher rules on related-party commercial deals 
  • Man Utd are NOT good enough to have a ball-playing keeper – It’s All Coming Up

Premier League clubs are set to vote for tougher rules on related-party commercial deals, in what will be seen as another attempt to restrict Saudi-owned Newcastle.

Mail Sport understands several top-flight sides are pushing for the changes that would make it more difficult for the likes of Newcastle to agree partnerships with Saudi companies, and so increase their commercial revenue.

Under the proposal, clubs would now have to prove they had multiple offers of the same value. 

At present, under rules brought in following Newcastle’s takeover in 2021, such deals are tested by the Premier League’s ‘Fair Market Value’ process. 

Newcastle, for example, agreed a £25million-a-year shirt deal with Saudi events firm Sela in June, signed off as fair by an independent valuer. It was significantly lower than their top-six rivals.

Premier League clubs are expected to vote for tougher rules on related-party commercial deals, which could restrict Saudi-backed Newcastle

If the vote goes through, it could make it difficult for Eddie Howe’s Magpies to agree partnerships with Saudi companies

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But new rules would mean clubs have to go out and negotiate several offers of similar worth, which could be seen as impractical and a waste of time. They are currently able to submit that type of evidence, but it looks set to soon be mandatory.

A vote will take place at the league’s next shareholder meeting on November 21, when it is expected that the 14 clubs needed will be in favour of the change.

However, experts say it raises questions over the Premier League restricting normal business practices, and whether Competition law will be contravened. 

The same legal challenges could apply to a temporary ban on loan signings between clubs with the same owners, as reported by Mail Sport on Wednesday.

We revealed that a vote will take place for a fast-tracked rule that would prohibit Newcastle, for example, from signing players from PIF-owned Saudi clubs in January. The rest of the league, meanwhile, would be free to trade with Saudi teams.

Newcastle head coach Eddie Howe is currently without 10 senior players because of injury and suspension, and the Saudi market could have been one avenue for reinforcement. He faces the press on Friday morning, when this week’s developments are sure to be discussed.

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