Newcastle United’s temporary ban on concluding lucrative sponsorship deals could still be extended.
Eighteen of the Premier League’s 20 clubs voted in favor of the short-term measure last month after Newcastle’s Saudi-backed takeover was finally completed.
Premier League clubs want to ensure that all agreements involving pre-existing business transactions linked to the club’s new owners are not inflated and instead reflect the true market value of such agreements.
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As a result, if this temporary change were made permanent, Newcastle’s current seven-digit annual event with Fun88 could not be dramatically changed to e.g. £ 50 million per year if the Magpies secured a new shirt sponsor linked to the Saudi Arabian Public Investment Fund (PIF).
Only Newcastle voted, not surprisingly, against the proposal last month, while Abu Dhabi-owned Man City were the only club to abstain.
It is important to emphasize that this short-term blockade applies to all member clubs, but many top executives have called for the introduction of a long-term rule in the light of Newcastle’s takeover.
A working group has meanwhile been set up to look into the matter and these club representatives may make some initial recommendations at the next Premier League shareholders’ meeting on November 11, where the month-long ban is expected to be extended.
It comes after a number of member clubs made clear their feelings about the takeover of Premier League chief executive Richard Masters and chairman Gary Hoffman during an extraordinary meeting to which Newcastle, not surprisingly, were not invited last month.
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