Prem clubs could face sanctions under new rules Newcastle and Man City opposed

05 March 2024 , 19:03

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Newcastle's owners were against the proposals discussed by Premier League clubs (Image: PA)

Newcastle United and all Premier League clubs will face sanctions if they fail to prove new sponsorship or transfers deals from related companies are a fair value.

The Premier League have published new rules which means club owners will be prevented from inflating deals they strike with companies, or clubs, they also own. The new rules caused a big split among clubs when narrowly voted through last month.

They are aimed at blocking the likes of the state owned Saudi Arabian Public Investment Fund pumping cash into Newcastle, who they own, via their vast array of cash rich companies they control. It also, for instance, prevents Newcastle selling players at inflated value to the four clubs the PIF own in the Saudi league.

Clubs could now be charged with breaking the rules unless they “use all reasonable care” to prove deals are at market value. An independent commission would decide on the severity of an offence with all penalties available.

Clubs connected to state ownership, like Newcastle and Manchester City, or those using multi-club ownership models, were opposed to the rules. Newcastle officials believe their growth is being held back by the established elite.

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They have been cautious in recent deals, including proving that selling Allan Saint-Maximin to Saudi for £25m in the summer was “fair value.” The burden of proof is on the clubs. The new Premier League rule book says the guidelines are for “fairness amongst clubs, so that clubs are not able to derive an unfair advantage over domestic competitors by increasing revenues or reducing costs via arrangements with entities linked to a club’s ownership”.

Newcastle’s current turnover is a third of rivals like Liverpool, Manchester United, Arsenal and Tottenham Hotspur, who voted in favour of the new rules, hampering their spending power under profit and sustainability rules. Manchester City’s income increased rapidly after their Abu Dhabi takeover in 2008.

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Simon Bird