Newcastle United may have just been handed a groundbreaking green light in terms of their future hopes for success.
The Magpies, who were taken over by the Public Investment Fund (PIF) in October 2021, the sovereign wealth fund of Saudi Arabia, have often struggled to generate legitimate cashflow options despite their undeniable riches.
But after the Premier League and Manchester City came to an agreement over Associated Party Transaction (APT) rules this week, Newcastle may now have been given an upper hand in their hopes to once again challenge at the very top.
Have Newcastle United finally found a way to bring in more legal revenue?
Manchester City's case with the Premier League is important for multiple reasons. Firstly, the Blues found flaws within the APT rules and sought to have vital changes implemented and corrected.
After news broke of Monday's findings, City now agree the alterations are both valid and binding.
It is worth noting that APT rules were put in place to stop clubs such as Newcastle United, Aston Villa and even Everton to an extent, from agreeing deals that weren't seen as fair value, thus allowing richer clubs to challenge the established so-called ‘big six’.
The Magpies wanted to agree a bigger deal with Saudi Arabian firm Sela, but the Premier League blocked the sponsorship from any potential inflation of this deal due to this reason. The consequences of this were that Newcastle had to sanction 11th-hour deals to sell both Yankuba Minteh and Elliot Anderson in order to bring in ‘pure profit’ and comply with Profit and Sustainability Rules (PSR) back in June 2024, with former stakeholder Amanda Staveley quick to criticise the rules.
But with Premier League clubs now asking for clarity over the agreement and the long-term future of APT rules uncertain, there is hope that Newcastle could earn more lucrative revenue streams via new sponsorship deals, especially given the contacts their Saudi Arabian owners have.
While there are no current plans for the rules to be scrapped, in October last year, a panel found three specific aspects of the rules to be ‘unlawful’, leading the Premier League to rewrite several of its own laws. There are no plans to do the same thing again right now – though both City and Newcastle are certainly hoping that the Prem look to replace the rules with something that favours them a little more.
Expert View
Sports finance expert Dr. Rob Wilson, speaking via BettingLounge, believes the Man City v EPL ruling is a reminder that football governance is increasingly being shaped not just on the pitch, but in the courts.
"The City v EPL ruling is significant because it reinforces the legal autonomy of clubs to challenge the Premier League’s regulatory powers.
"While the arbitration process is rightly confidential, and I appreciate some will call for greater transparency as part of the governance process, it does show that arbitration works.
"Like the City 115 case though, we will have to wait some time for the written explanation for the case.
"The outcome may well set a precedent that other clubs may follow, particularly when commercial interests are at stake for clubs with wealthy backers (think Newcastle in particular).
"It’s also a reminder that football governance is increasingly being shaped not just on the pitch, but in the courts."
Although Newcastle will not be able to directly sue the Premier League, as rules permit them from doing so, they may seek damages, and nothing is stopping them from prompting their own arbitration, like City has done.
With hopes of breaking the top-six monopoly, FourFourTwo believes it is only a matter of time before Newcastle attempts to once again break the hierarchy at the top, especially given the new rules around APT deals.
