Newcastle United owners to strike massive deals if Premier League vote is carried in 15 days time?
A new media exclusive has revealed that Newcastle United owners could have the potential to strike massive deals if this Premier League vote is carried.
The media exclusive is from The Times and they repeatedly have great insight into what is happening ahead of key meetings of Premier League clubs.
They have revealed that the 20 Premier League clubs will meet in 15 days time.
When they meet, they will be taking part in a vote that could be the game-changer for the Newcastle United owners, as well as other clubs, such as Manchester City.
If the vote is carried on Friday 22 November 2024, The Times report ‘Door open for huge deals if Premier League loosens related party rules.’
The vote will be made with regard to proposed rule changes on Associated Party Transactions (APTs).
Very well connected, The Times have seen the 14 page document that has been circulated to the 20 Premier League clubs before the meeting in London on November 22.
These proposals aren’t ones put forward by one hopeful club, instead they are the result of meetings of the Premier League’s legal advisory group and financial controls advisory group.
The Times say that these proposals have been drafted with the assistance of “leading counsel, Daniel Jowell KC” and if they are voted in by the clubs in 15 days time, the changes will be effective immediately.
These proposed rule changes on Associated Party Transactions (APTs) could open the door for significantly more lucrative sponsorship deals for the Premier League clubs, rules around related party deals would be significantly looser if the amendments are voted in later this month.
Talking about what is in this leaked document and the proposals made, The Times report:
‘In the proposal document, the definition of “fair market value” has been softened slightly from whether the amount “would” be sold to “could” be sold between willing parties.
Of potentially huge significance, however, is the fact that the words “in normal market conditions” have gone from the existing rules, along with three paragraphs outlining what that actually means. City’s legal dispute was sparked by a block that was placed on a large new sponsorship deal with Abu Dhabi-owned Etihad Airways, but the rule change would seem to make allowances for the value an oil-rich Middle-Eastern state may place on an association with a top-flight English football club.
The clubs will meet at the Nobu Hotel in Portman Square, and while League officials are hoping this brings some peace to a situation that has escalated into civil war between rival clubs, it remains to be seen if these proposals will be passed with a 14-club majority required. Previous votes on the rules, introduced in 2021 in the wake of Newcastle United’s Saudi-led takeover, have been on a knife edge, with 12 voting in favour and six against — with two abstentions — when the amendments that sparked City’s legal dispute were passed in February.
As well as the shareholder loans, which for some clubs run into millions of pounds, the proposed amendments concern a reversal to some of the rule changes implemented this year and a club’s access to the relevant data, which is relied upon by the Premier League board when assessing if an APT is of “fair market value”. In future, access will be granted before the appeal stage.’
This latest exclusive is from The Times journalists Matt Lawton and Martyn Ziegler.
It follows that excellent article this past week from their colleague Martin Samuel, who brilliantly detailed how, even if FFP/PSR were drafted for the best of reasons originally. When it comes to the Premier League, all the various rules are being kept in place almost exclusively so that the likes of Man U, Liverpool and Arsenal can’t be challenged long-term by other clubs trying to bridge the financial chasm that divides the meg-rich and powerful from the rest.
Aston Villa saw their proposal of a modest rise in allowed losses over three seasons, from £105m to £135m, voted down by other Premier League clubs in June. Football finance expert Kieran Maguire made the point this past week, that this £105m allowed losses figure was set in 2013 and has never changed, despite in the space of 10 years, Maguire saying that by 2023, what £105m could buy in the transfer market back in 2013 – you would now need £504m to have the same spending power.
