Newcastle United already told Saudi Arabian cash injection imminent after Man City legal case.
Football financial expert Stefan Borson previously claimed Newcastle United could “open up possibilities” if Manchester City win their Associated Party Transaction case against the Premier League.
That became a reality yesterday, with the ruling – introduced following Newcastle’s takeover three years ago – labelled “unlawful” in an arbitration hearing. It remains unclear what will change, however, with the top flight also claiming a victory.
The rules were introduced to ensure commercial deals are of “fair market value” and not used as tools to gerrymander FFP/PSR restrictions. Man City, also accused of breaching financial regulations in a separate legal battle with the Premier League, contested these measures.
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Newcastle are understood to have been keeping close tabs on the APT case given the takeover backdrop. The hope is that should, as expected, the rules change, Toon chiefs can create closer – and lucrative – ties with PIF-backed companies.
As it stands, front-of-shirt sponsor Sela is also owned by the sovereign wealth fund. Monetary guru Borson claimed earlier this month that a City triumph over the Premier League could explore fresh Saudi investment.
“If City were successful in their challenge of the associated party transaction rules, that could open up some more possibilities for some sizable Saudi deals for things like the training ground and maybe some other properties that Newcastle have,” he told Football Insider.
“But in the absence of that, Newcastle have had a tough year this season from a financial perspective. They have lost £40million of European revenue compared to last season. Just getting to the same level of revenue is going to be a challenge.”
