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
- A Premier League shareholders meeting will take place later this month
- Clubs will vote for stricter rules for commercial deals with related parties
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Premier League clubs will vote for stricter rules on commercial deals with related parties, in what will be seen as a new attempt to clamp down on Saudi-owned Newcastle.
Mail Sport understands that several top clubs are pushing for changes that would make it harder for players like Newcastle to form partnerships with Saudi companies to increase their commercial revenues.
Under the proposal, clubs would now have to prove that they had multiple offers of the same value.
Currently, under rules introduced following Newcastle’s 2021 takeover, such deals are tested by the Premier League’s ‘Fair Market Value’ process.
Newcastle, for example, signed a shirt deal worth £25 million a year with Saudi events company Sela in June, which was deemed fair by an independent appraiser. It was significantly lower than their top six rivals.
Premier League clubs are expected to vote for stricter rules on commercial deals with related parties, which could limit Saudi-backed Newcastle
If the vote goes ahead, Eddie Howe’s Magpies could find it difficult to forge partnerships with Saudi companies
But new rules would mean clubs would have to negotiate several offers of similar value, which could be seen as impractical and a waste of time. Currently they can provide that kind of evidence, but it looks like it will soon become mandatory.
A vote will take place at the league’s next shareholders’ meeting on November 21, when the 14 required clubs are expected to be in favor of the change.
However, experts say this raises questions about the Premier League’s restriction of normal business practices and whether competition law will be breached.
The same legal challenges could apply to a temporary ban on loan deals between clubs with the same owners, as reported by Mail Sport on Wednesday.
We revealed that there will be a vote for a fast-track rule that, for example, bans Newcastle from signing players from Saudi clubs from PIF in January. The rest of the league, meanwhile, would be free to trade with Saudi teams.
Newcastle head coach Eddie Howe is currently without ten senior players due to injury and suspension, and the Saudi market could have been an opportunity for reinforcements. He will speak to the press on Friday morning, when this week’s developments will undoubtedly be discussed.