The Premier League in dispute over sponsorship of Newcastle as 18 clubs vote in favor of a month-long ban on sponsorship of related matches … with Manchester City the sole teetotaler.
The Premier League is set for a bitter battle between major clubs next month over Saudi Arabia’s takeover at Newcastle United, as a number of clubs seek to ban partner company sponsorship deals associated with competing clubs.
Newcastle CEO Amanda Staveley is expected to attend the shareholders meeting next month to respond in person to Monday’s emergency Premier League meeting, which led to a vote in favor of a month-long moratorium. of any club that concludes sponsorship agreements with related parties.
Monday’s meeting was called to discuss the acquisition of Newcastle by the Saudi sovereign wealth fund, the Public Investment Fund and the vote on the moratorium was proposed by Crystal Palace owner Steve Parish.
Newcastle owners fear Premier League clubs will soon target them in upcoming meetings
Amanda Staveley to attend Premier League shareholders meeting next month
It was apparently sparked by fears that Newcastle would announce big endorsement deals with Saudi-backed companies and threaten other clubs.
Eighteen clubs backed the measure, with Manchester City abstaining and Newcastle voting against. Now a working committee is being appointed to toughen the current rules.
The committee is likely to study suggestions from the Big Picture Project, which proposed that endorsement deals with related parties be limited to £ 50 million.
Sources close to the talks have suggested that the Premier League will establish a permanent independent body to assess the fair value of all new deals, to prevent Newcastle from claiming that its shirt sponsors, estimated at £ 5 million a year, are suddenly worth £ 5m a year. 25 million.
The new owners of Newcastle have promised to invest in the future of the city.
Newcastle was acquired by the Saudi sovereign wealth fund earlier this month.
However, club sources have pointed out that any future sponsorship deal would be assessing the club’s expected success two or three years later and will be worth more than current deals.
Since such rules will not be ready for next month’s Premier League shareholders’ meetings, the moratorium is expected to be extended. Newcastle’s new owners are of the firm opinion that such a move would be cartel-like and as such illegal.
But they also believe that most clubs will be of the opinion that Saudi investment will increase the value of the Premier League.